Buy and Sell a Home at the Same Time

Are you about to buy and sell a home? More importantly, are you about to purchase a new one? How do you do this at the same time? First off, relax. If you find yourself at a loss to answer these questions, it’s probably because you’re extremely confused and stressed out. In this blog, you will understand the best plan of action to take:

Buying First

Either you are a millionaire or you are amazing at saving money; whatever it is, congratulations! You are now officially an owner of two houses!

Why should you do this?

Buying first means you got your hands on a very reasonable deal. If you are buying first, you were smart enough to seal the deal at a very cheap price and on the exact same property you wanted. The benefit of buying first is that you have now sealed the deal before anyone else could even know about it.

Secondly, now that you are the official owner of a new house, you can move in smoothly. You now have plenty of time on your hands to carry out the entire moving process with efficiency and without any fuss.

Why should you not do this?

Wait a second; did you get the payment for your old house? I’m assuming you did not. Great! Now you have two mortgages to pay for from your income!

Your income was still the same but the installment payments doubled and now, you’re in financial crisis. The only thing you can do now is compromise on your lifestyle and cut down on your expenses so that you can manage to pay your mortgage installments.

What if you’re unable to sell your house for a long time? Oh Lord! Now, not only are you in financial crisis, you’re also burdened and in debt. You will either have to borrow more to spend or completely cut down on your other expenses and save as much as you can.

Clearly, buying first isn’t the smartest option!

Selling First

Why you shouldn’t do so:

Selling without having a house lined up means that you will be temporarily homeless and will have to move into a makeshift rental residence. This will increase your monthly expenses as you will now be paying the rental expense along with all your other expenses.

Why should you do so?

A layman’s decision will always be to sell first. Selling your house first means you have sealed the deal and now, have money in your hands to get a new place. By having enough finances, you can now prepare a budget of how much you are willing to spend on purchasing the new property.

You have a plan of action to follow.

Secondly, selling first means that you are done with disposing off the property and do not have to pay any more amount as mortgage. Now, if you buy your new home, you will only have to pay for one mortgage. You don’t have to cut your throat or starve to death to save money. If your income is stable, you will surely be able afford this much.

Be smart when buying and selling your property and thoroughly research before making any sort of decision.