Tips for Selling Your Home and Buying Another

Tips for Selling Your Home and Buying Another

The Switch Over

Often people become dissatisfied with the house they are currently staying in due to various reasons, such as bad neighborhood, difficulty in commuting or having outgrown the old house. It is then that they feel the need to sell their current home and buy another one instead. Ideally, it is not a very difficult task to do so, but an individual must keep in mind a few pointers, which will help make a smooth switch over.

Selling and Buying a House at the Same Time

If the homeowner sells his current home before buying a new one, he may start to rush in to finding new homes IN for himself and his family, thus making a wrong choice. Therefore, it is advisable to first select, inspect and decide on the new house you wish to buy. After you’ve found something worthwhile, keep an eye out for prospective buyers for your current home. It is mentioned above that you should ‘decide’ the house you wish to buy and not just buy it, as this would result in you paying for two houses at the same time. What creates a problem is if you need to sell the first house to make a down payment for the second. To avoid this problem, one should carefully assess the market and find out which area is a seller’s market, where it is easy to sell a property and buy a new home.

Tips for Selling First or Buying First

If you decide to sell your existing home first, it enables you to get some cash in hand for making the down payment for your new house. But the question that arises is: where are you going to live if your sell your current home? A contract may be drawn with your new homeowners to let you live in your old house for a few weeks, and you may agree to cover all the costs that come up in that particular time frame.

Another option is to rent a cheap hotel, stay with a friend or relative or find an apartment on a short-term lease. If you decide to buy one of the new homes IN first and then sell the existing one, you would have to qualify for a second loan and also pay double the mortgage payments and insurance costs.

However, without the money from the sale of the first house, there are ways to make the second down payment. One can try to get a home equity line of credit, with the interest rate being 0.5 to 1 % above the main rate. Once you sell off your old home, you can immediately repay the loan. Another option is to borrow some money from a relative by drawing up a promissory note with all the details, with your new house as collateral. If all these tips are kept in mind, whatever you wish to do, sell first or buy first, it would become an easier job, letting you settle down in your new home relaxingly.

Feb 5, 2017 - Posted by MarkJohn - No Comments

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