Selling your current home and buying a new one can be one of the more tricky financial maneuvers. Closing on your home is enough to command your undivided attention, but add to that the hassle of moving and you may easily end up in quite a tight spot.
The question becomes: what is the easiest way to go about this?–Should you buy or sell your house first? Should a homeowner sell their home first and wait to buy, or should they preemptively buy and play double homeowner temporarily while they hold out for a decent offer?
If you Buy a Home First
Buying before you close on your old home may seem to hold lots of appeal. You get to live out your Monopoly-inspired dreams of being a property baron, even if it is just for a few months.
The unfortunate reality is that owning two homes is far more cumbersome than people realize. Properties are harder to maintain when you are not there every single day. Most worrisome of all, your homeowners insurance coverage could be suspended if your home is left vacant for more than 30 days, leaving you wide open to complete liability for fire and vandalism.
On top of those worries, affording two mortgages and a down payment is not something many homeowners have the income to support. These factors make buying first much more realistic for people who have paid off their first home completely. Even then, they must be confident that they can receive fair offers, or they will be pressured to accept the first one that presents itself.
Selling Your House First
Selling first can place similar pressure on a homeowner to buy a house quickly. Especially in the current lightning-fast Dallas real estate market, finding a home without getting outbid can be a challenge. People may have the luxury of entertaining several offers on their own home, but they might have to wait before they have the opportunity to find a home they want at a price they can afford.
This lengthy search makes selling first a better prospect for some since it lets the homeowner focus completely on buying a new home. They can rent temporarily and give themselves the time to scout out the market and avoid pressured bidding competitions.
The drawback is that they will have to find a place to rent in the meantime and likely place most of their belongings in storage at an additional incurred expense. Living in this situation can be uncomfortable for some, but it could give the homeowner the opportunity to patiently await a home at a decent price to come on the market. They are also more likely to have received a generous offer on their home since they did not try to end the listing prematurely.
In the end, Dallas area homeowners have a difficult decision. Owning two homes can be a financial burden to many, but some people have the income to afford it. For others, their best bet is to go ahead and take advantage of the current market to sell their home at the best possible price, then seek out a new home when the opportunity presents itself.
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