Bonus Material: A Free Guide That Helps You Get Sell Ready (18 Home Preparation Tips)

You have been looking for a new home but still, have your home. Many people suggest selling your home first before purchasing a new place. This can be helpful for finances, but it isn’t always the best route.

 

You can buy a house without selling yours first. You can have multiple houses and multiple mortgages. There may be a few obstacles or requirements before purchasing a new home that will be taken into consideration by either you or the mortgage loan companies.

You don’t even have to sell your home before purchasing the next one. You can use it as passive income, or you can sell it after you have moved into your new home. Here is everything you need to know when buying a new home without selling yours first.

Can You Buy A House Without Selling Yours First?

Of course, you can! If you have the means and need to have a home purchased to move into, then you can buy a house before selling your current one. There are no rules that say you can’t buy another house when you already have one.

Buying a house is a big purchase, and this is why you will often see people sell their current house first before purchasing their next house. But there are many considerations to make when you decide to take this route with your real estate.

The Benefits Of Buying Before Selling

There are many benefits that come with buying a new house before selling it. This is why some people, especially those with families, like to buy a home and then move to sell their previous home. Here are some of those benefits:

 

  • You can move into your new home without worries of finding a place to stay.
  • Less stress for moving.
  • You don’t have to store your items somewhere until you buy a new home.
  • Less time restraint with moving.
  • Less time restraint in setting up the new home.
  • More time to transition.

 

These points are great when you have large pets and a large family. It can be difficult to find places to stay while searching for a new home. This eliminates that issue.

The Cons Of Buying Before Selling

Although there are many benefits to buying before selling a home, there are some downfalls. Buying a home is a big purchase, and if you are not financially secure, it may not be the best decision to go with. Here are some downfalls to take into consideration:

  • You will have to find another way to pay for the deposit on your new home.
  • You may be stuck with two mortgage payments temporarily.
  • May put you in financial constraints.
  • You don’t know how fast your old house will sell.

If you haven’t paid off your current home, it could cause financial problems. Your mortgage company may need a plan on how you will pay for this, and you may not be approved for the new loan if you don’t have enough income compared to your debt.

Real estate can be unpredictable at times and is always changing. This can make it difficult to sell your current home, especially if you are trying to sell it fast. Unless you have someone already lined up, you could be sitting on your old home for months before someone buys it.

How To Buy A New Home Before Selling Yours

If you can buy a new home before selling your current one, you need to consider a few things when buying. Here are those considerations:

  • Check out the market for your current home and the home you are looking for.
  • Decide if this is the right time to buy and sell your home.
  • Make your home look presentable to prospective buyers.
  • Find a local real estate agent.
  • Figure out how you will pay the down payment for your new home.
  • Make parameters for what you want in your new home.
  • Ensure you are financially capable of owning two homes temporarily.

Alternative Options For Your House

Sometimes selling your current home can be difficult. If you are having issues selling it and need a way to make income or pay its mortgage, you don’t have to just sit on the home. You can use it as a rental or even post it on websites like Airbnb.

By doing this, not only will you be more financially secure, you can have a passive income that requires little to no work while you still have it on the market.

Using It As A Rental

Using your first home as a rental can be a temporary or a long-term commitment. This all depends on what you need or what your situation is. Most renters will be looking at a six-month or yearly contract. 

You may want to start with a shorter-term contract in the beginning if you are new to renting out your home. This will help you decide if renting out your home is really for you and if you want to continue doing it or just sell it entirely.

Try Airbnb

If you need something more temporary than renting out your home, using it as an Airbnb can be a wonderful option. You can rent out the whole house or even rent out rooms. It is simple to sign up through Airbnb, and you don’t have to worry about long contracts.

If your home is in a prime location, many people will be booking in no time, and you will be earning more money from Airbnb than if you were to sign with a renter. The income could cover the mortgage or more.

Downfalls To These Alternatives

There are always downfalls to renting out your home, whether to a renter or Airbnb. Here are some things to think about if you do want to take this route:

  • Renters don’t always pay their rent on time.
  • Renters could be unreliable.
  • Guests may damage the property.
  • You are still responsible for another property.

CONCLUSION

Buying a house without selling yours first can be very beneficial and easy on you, but it could also make it harder financially. Either way, this is a big investment, and you should consider all aspects when you decide to buy a second home before selling your first one.

 

WHAT NOW?

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