In a perfect world, everyone who puts their home on the market ends up selling it in record time. If not that, then anyone trying to sell their home will do so at the exact moment they close on the house of their dreams.
Ideal scenarios like the ones above are not what reality is made of, particularly right now when the economy has set it up to be a buyers market. There are often too many homes on the market compared to buyers who are looking to purchase, and the price you're asking might be too high. A problem arises if you happen to find a new home you'd like to purchase when your house still remains on the market unsold.
There are many things to consider when it comes to this scenario. Your first option is always to wait until your house sells before purchasing another, even if you've found a house you'd like to buy. If the market is slow on your end, it likely might be similar for the seller of your potential new home, as well. This is a gamble, of course, but if you're not financially capable of handling two mortgages, it's a good option to consider.
Dependent on your finances entirely is the second option. You might have to foot the bill on two mortgages at once if you choose to put an offer on another house while yours is still on the market. Although a seller might back out of the contract as a result, it is also possible to make the offer contingent on you selling your own home. This is a good choice if your job is stable and you have the financial means.
You can also look into a rental situation on your current residence while you wait for it to sell and make an offer on the house you want to move to. A tenant will pay your mortgage, making it possible for you to afford the mortgage on your new home more. Tenants expect you to be an active and committed landlord a lot of the time, however, which is not always as easy as it may initially appear. If your tenants default on monthly payments or end up damaging your property, your end situation might put you in a worse place than where you were at before you decided to rent. Before you commit to any single option, though, do your research to make sure you know which one is the best for your own personal circumstances.
Ideal scenarios like the ones above are not what reality is made of, particularly right now when the economy has set it up to be a buyers market. There are often too many homes on the market compared to buyers who are looking to purchase, and the price you're asking might be too high. A problem arises if you happen to find a new home you'd like to purchase when your house still remains on the market unsold.
There are many things to consider when it comes to this scenario. Your first option is always to wait until your house sells before purchasing another, even if you've found a house you'd like to buy. If the market is slow on your end, it likely might be similar for the seller of your potential new home, as well. This is a gamble, of course, but if you're not financially capable of handling two mortgages, it's a good option to consider.
Dependent on your finances entirely is the second option. You might have to foot the bill on two mortgages at once if you choose to put an offer on another house while yours is still on the market. Although a seller might back out of the contract as a result, it is also possible to make the offer contingent on you selling your own home. This is a good choice if your job is stable and you have the financial means.
You can also look into a rental situation on your current residence while you wait for it to sell and make an offer on the house you want to move to. A tenant will pay your mortgage, making it possible for you to afford the mortgage on your new home more. Tenants expect you to be an active and committed landlord a lot of the time, however, which is not always as easy as it may initially appear. If your tenants default on monthly payments or end up damaging your property, your end situation might put you in a worse place than where you were at before you decided to rent. Before you commit to any single option, though, do your research to make sure you know which one is the best for your own personal circumstances.
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