If you’re like many people, you understand that sometimes you put your house on the market while you’re looking for a new one – but sometimes, that’s not the best idea. In fact, if things go haywire, you could miss out on your dream home because you couldn’t sell your dream home in time.
There are some instances in which it’s better to sell your current house before you even start shopping for a new one. Here’s what you need to know.
Should You Sell Your House Before You Buy a New One?
For many people, selling a currently lived-in home before house-hunting for the next one is the best option. Here’s why:
- You risk holding two mortgages (and one is on an empty house)
- You’re buying in a competitive market
- You’re selling in a slow market
Let’s take a closer look at each of these.
#1. You risk holding two mortgages (and one is on an empty house)
If you can’t sell your home before you buy the next one, you’re going to be saddled with two mortgage payments – and one of them is going to be on an empty house. That can really stretch you thin, especially if you’re waiting a while to sell your home. Even worse, you could discover that you need to make some repairs or upgrades in order to sell your existing home, which will cost even more money.
Related: 5 times it’s a good idea to sell your home on 30A
#2. You’re buying in a competitive market
Sometimes when you’re buying in a competitive market, it’s tough to put in an offer that a seller will accept – you’re bidding against other buyers who want the home just as much as you do, and they might offer more money or include an amazing offer letter that really gets the seller motivated to sell.
Or – and this is common – you might have to put in an offer that has a contingency that says you have to sell your current home before you can buy the one you want. Sellers might compare that to other offers and decide to skip yours.
#3. You’re selling in a slow market
When your current home is in an area where homes aren’t selling very quickly, you could have a problem on your hands – you could end up holding two mortgages. You could even have to sell your home for less than you wanted to sell it for, which can affect your down payment on the next home. In cases like this, it’s often better to live in your home until it sells, and then rent a place until you find the perfect home for sale.
How Much is Your Home Worth?
Every home is different, so it’s a good idea to have a licensed real estate agent complete a comparative market analysis, or CMA, for you. Don’t rely on “Zestimates” or other computer-generated estimates on how much your home is worth – they’re typically off by as much as 18 percent. That’s because when a real estate agent does a CMA, he or she compares similar properties in similar areas, accounting for things like home upgrades, repairs and other issues – and your agent will understand what the local market can bear based on your home’s specifics.
Find out how much your home is worth now!
Are You Buying a Home Along 30A?
If you’re thinking about buying a home for sale on 30A, we can help you. Sign up for exclusive access to the hottest listings – we’ll notify you as soon as homes that meet your needs hit the market!
You can also check out all our 30A real estate listings or get specific with these links:
- Alys Beach homes for sale
- Destin homes for sale
- Grayton Beach homes for sale
- Panama City Beach homes for sale
- Santa Rosa Beach homes for sale
- WaterColor homes for sale
