5 Wise Situations for Selling Your Old Home Before Buying a New One
It is a significant financial and emotional decision to sell your current residence before purchasing a new one. There are certain circumstances in which selling your existing property before buying a new one can be a strategic move, and this is because timing is one of the most critical factors in the real estate market.
“Imagine purchasing a new home before selling,” says Brad Malow, a real estate broker with Compass in New York City. “The market then turns, perhaps you run into employment or financial troubles, an unexpected world event happens, a pipe bursts in your home—whatever it may be, you’re now stuck carrying two properties for longer than you anticipated.”(1) We will explore five scenarios in which this approach can benefit homeowners, allowing them to navigate the process confidently and minimize potential risks simultaneously.
Financial Preparedness
If you can do so, selling your current residence before purchasing a new one can be a sensible course of action. When we buy houses Kansas City, it is essential to have sufficient funds to cover the down payment and the closing costs. In addition, a contingency offer, which states that the purchase of the new home depends upon the sale of the old one, might only sometimes be appealing to sellers, particularly in markets where there is a lot of competition for homes.
If you sell your old house first, you can avoid the stress of carrying two mortgages simultaneously and secure the necessary funds to purchase your new home. When you make an offer on your new dream home using this strategy, you put yourself in a better position to negotiate with the seller. In addition, you can make well-informed decisions regarding purchasing a home if you have a solid understanding of both your financial and budgetary constraints.
Avoiding the Burden of Double Mortgages
When you sell your old home before you buy a new one, you avoid the burden of carrying two mortgages at once, which is one of the most significant benefits of this strategy. Even for people with firm financial profiles, owning two properties can be challenging financially. The strain of juggling two different sets of mortgage payments and property taxes, insurance, and maintenance costs can quickly intensify.
If you sell your previous residence first, you can alleviate some of the financial pressure that comes with owning multiple properties simultaneously by freeing up capital. You can take advantage of this newly discovered financial flexibility to negotiate a better mortgage rate for your new home or make investments in it, which will increase the home's overall value.
Relaxed Conditions During the Selling Negotiations
The pressure that can get felt during the selling negotiation process can be alleviated by selling your old home before purchasing a new one. When you are not in a hurry to sell your old house, you have the luxury of taking your time to stage it and market it to those who we buy ugly houses Kansas City. It can attract a larger pool of those who we buy houses Kansas City, which may result in better offers.
In addition, since you have the luxury of time, you can stick firmly to the price that you are asking for and negotiate with potential purchasers from a position of strength. You won't feel any pressure to accept an offer lower than your expectations simply because you need to sell your home quickly to make room in your budget to purchase your new residence.
Additional Time to Look for the Perfect House
Finding a new house that is both suitable and affordable can be a difficult and time-consuming process. If you first sell your current residence, you will have the financial freedom to be patient and diligent in your search for the ideal property. The approaching date of the sale of your previous residence will allow you to decide promptly.
If you have more time, you will be able to investigate a variety of neighborhoods thoroughly, research current market trends, and go to several open houses. It enables you to make an informed decision, increasing the likelihood of finding a home that both genuinely satisfies your requirements and aligns with your long-term goals.
Ability to Negotiate with Contingent-Free Offers
In a real estate market that is highly competitive, sellers frequently favor offers that do not contain any contingencies. If you sell your current home before purchasing a new one, you can make a risk-free offer to the sellers of the new house, increasing the likelihood that they will accept your offer. The seller will have peace of mind knowing that the deal will go through without complications from selling another property if they take this kind of offer.
In a seller's market, where there are typically multiple offers, making a firm offer free of any contingencies can give you a competitive advantage. It establishes you as one of those who in Kansas City we buy houses and are serious and committed about it, increasing the likelihood that your proposal will get chosen over others who we buy houses Kansas City MO.
The decision to sell your current home before purchasing a new one is strategic and can provide you with several benefits and a sense of calm. This strategy should get considered for several compelling reasons, including the ability to be financially prepared, the avoidance of the burden of double mortgages, less pressure in selling negotiations, additional time to find the ideal home, and the capability to negotiate with contingent-free offers.
Before making a final decision, it is essential to consider the specific circumstances of your situation, the current conditions of the real estate market, and your long-term goals. If you want to successfully navigate the complexities of when
we buy houses in Kansas City, consulting with a reputable real estate agent can provide you with valuable insights and guidance to help you navigate those complexities. You'll be able to make a prudent choice considering your one-of-a-kind requirements and goals if you consider all the possibilities and thoughtfully remain well-informed.
About the author
Benjamin Allgeyer
Benjamin Allgeyer is a real estate investor and the owner of Crown City Home Buyers, a cash home buying company based in Kansas City, MO. Benjamin has a passion for helping homeowners who are facing difficult situations, such as foreclosure or financial distress, by providing them with a quick and hassle-free solution to sell their homes. He is committed to providing his clients with exceptional service and helping them achieve their real estate goals.
We here at Crown City Home Buyers are dedicated to getting the most cash possible into your pockets for your home as-is, so that you can get the most out of this situation and prepare to move on. We will buy houses in any condition without you needing to fix your home before sale.