Buy a Home, then Sell?
This is an outline of the pros & cons to help
you decide which option is right for you.
Pros: By purchasing your new home before selling the old one, you have the option of taking your time to shop around. You can wait for the perfect house to become available, without worrying about having to move out of your current house once its sold. If its a seller’s market, this may be a viable option for you; when you can sell your house quickly.
Cons: Buying a home first, can be somewhat risky in regards to the financial aspect. You could potentially end up owing two homes with the maintenance and costs they both entail. Also, your loan fees may be higher, especially with a bridge loan.
Risk Reduction: Talk to us about the current market value of your home. Meeting with a lender and getting pre-approved for a home loan doesn’t affect the actual purchase and may give you some options if you are considering buying a home first and then selling. Using conservative estimates, we can help you figure out how to find the house you want to buy, affordably. It’s a good idea to prepare your home and have it ready for a sell. And its always an option to lower the asking price if your home doesn’t sell quickly enough.
Sell your home before buying?
Pros: Selling your home before buying a new home is the safest option, where you can be confident in knowing how much money you can invest into your new home. You are also saved from potentially carrying two mortgages, and there will be fewer loan fees. Selling your home before buying is the best option when it’s a buyer’s market and buying a new home is more sure than selling your old home. A good option if you don’t have much equity in your current home, but also a good choice if you are willing to move into temporary accommodations until your new home is available.
Cons: The downside to selling your home first is that you may not find your new home before moving out of the current one. Costs can add up if you have to move into temporary accommodations, or pay for storage until the new home becomes available. Also if the “perfect” house doesn’t become available quickly enough, you may decide on a less than perfect alternative.
Risk Reduction: When searching for new homes that meet your price and expectations, we can also show you the current and estimated availability dates for moving in. Your lender can also give you several financing options to help your situation. Its also a good idea to plan for the possibility that you may not find the home you want within the time-frame you need, and house a flexible housing option as your backup plan.
Buy based on the sale of of current home?
This is an option where your offer to buy a house for sale is contingent on the sale of your current home. The sellers of the home you wish to buy, remains on the market, and if they receive an offer without this kind of contingency; you would have the choice of removing the contingency and buying the house immediately, or lose the home to the competing offer.
Pros: This is a great option to avoid owning two homes.
Cons: You run the risk that the seller will find a buyer that will make an offer on the house without that contingency, and in turn buy the house out from under you.
If you’re relocating to Portland, buying or selling a home in the Portland area –
Contact The Mork Group, and we can help you determine what is the best option for you.