Does It Make Sense to Buy a New Home Before You Sell?

If you are ready to purchase a new home, but have not sold your old house yet, you will need to make a difficult decision.

Should you purchase the new home now, or just wait until the old one sells.

The answer to this question is not so simple.

However, by asking yourself some additional questions, you will be able to make the right choice about purchasing your new home.

Is The New Home A Necessity?

Are you required to move for work or family reasons, and is this move needed immediately?

If so, you may wish to purchase your new home now and keep your old property up for sale.

If you are moving out of state, contact a management company to keep the maintenance up on your old home until it sells.

If you are going to own two homes at one time, it is also important to consider some of the double costs you will be incurring during this period.

You will have to pay maintenance and some of the utilities on both properties until the older home sales.

These additional costs should be part of your consideration.

Is It A Really Good Deal?

Sometimes the price on the perfect home cannot be overlooked.

Combined with low interest rates, it may be in your best interest to secure the new home right now and keep your old home on the market.

Real estate prices have begun to climb again as the economy grows stronger.

Locking into a good deal now may prevent you from paying a lot more in the near future for the same type of property.

In addition, you can use your older home as a bargaining tool on the new home purchase.

If the seller really wants to sell their home, they may be willing to negotiate the price or throw in some extras like a home warranty to convince you to purchase the property before selling your old home. Use this to your advantage.

Can You Afford Two Mortgages?

You must consider if you can afford two mortgage payments during the time you are waiting for your home to sell.

If you can, make the purchase. If you cannot, you may want to speak to your realtor about different options for selling the old house.

Your realtor may recommend several options including reducing the selling price, creating a massive marketing campaign, or even packaging the home up as rent-to-own if this is allowable in your area.

All of these options should be discussed with your realtor.

Consider Being A Landlord

If you are interested, you could take advantage of owning two homes and become a landlord.

Some realtors also work as management companies for rental properties.

By placing your home with a management company, you can keep the equity you have in that home, increase your net worth by owning two properties, and have the mortgage payment covered by the renters.

If you are looking for a condo to buy in Arizona, We Know Urban Realty will help you find the perfect place.

Their realtors are experts when it comes to urban living.

Visit the site to see what's available right now: www.weknowurban.com