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Buying and selling a home
Few people stay in the first home they buy forever. Most people end up moving at one time or another, and that leads to the question - Do you sell your existing home first, or do you buy the new home first? We will offer some tips on how to handle this delicate situation.
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Buying a house is an expensive and legally complicated thing to do. That’s why there are professionals that handle such things for a living. The only thing that can make buying a house more complicated is if you need to sell one at the same time. It’s a common occurrence; few people buy just one home in their lifetimes. They may outgrow their existing home by adding children, or they may simply want more space, or a job transfer may make moving a necessity. Regardless of the reason, there are times when it will be necessary to buy and sell at the same time. How do you do it? Most people don’t have the money to pay for the new home while still living in the old one.
Here are some suggestions that may help you if you find yourself in this situation:
- Buy on contingency - Many sellers will work with you to arrange a deal where you buy their home once your home sells. You put your home for sale and once you have the money, you can buy the new house. This hasn’t worked too well in the recently explosive real estate market, but things are slowing down a bit, so you may find success with this method. As sales slow down, sellers will be more willing to accept contingency deals, especially if the alternative is not selling the property at all.
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- Live in your existing home as a renter - It may be possible to sell your home now and work out an agreement with the new buyer to let you rent it from them for a set amount of time while you make arrangements to buy your next house. It would help if the new buyer isn’t in too much of a hurry to move in. Otherwise, you’ll be out of luck.
- Rent another piece of property. Put your house on the market, sell it, and rent something until you buy a new house. Granted, it means that you may have to move twice, but it’s still a solution.
- Home equity loan - Many people take out a home equity loan against their existing house and use that money to put a down payment on the new one. If you do it right, you should be able to make a down payment and have funds to make the mortgage payment for a few months while you sell the other house.
The problem of buying a house while selling another one isn’t new; people have been dealing with this issue for decades. There are a number of possible solutions, though, and you should be able to work out some sort of agreement with either the buyer of your existing property or the seller of the new one that will allow you to facilitate both transactions. It probably won’t be easy or convenient, but these days, what is?
If you have a mortgage with a high interest level, you may wish to ponder a new loan. You could consolidate your debt and lower your loan payment. Ameriquest Mortgage can arrange for you to refinance now.
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