Do not be cocky when it comes to selling off your old house. Just because it is awesome does not mean it will be easy or even fast. So, as much as you want to get on with it, do not buy another property before getting the current one.
Here are few things that could happen if you were to buy another house before this yours is off the market.
What if your new house needs some new parts such as pipes, insulation or even a restricting of some pillars? What are you going to do then? Wish you did not buy a new property before the old one was sold? Too late!
What if upon inspection of your old house you are told that it needs a new foundation or a serious termite problem that needs to be nipped in the bud? So you getting it now?!
#2. Existence of equity
If the equity on your old house is large enough, you may exercise your right to take on two mortgages at the same time.
But if the equity is not sufficient, please, please, please do not even try it. It is an impending doom for you.
#3. What does the market look like?
The real estate naturally has a bipolar nature so make sure to study it carefully to make sure that an episode is not definite. So study the market in the area in which your old house is located. If the market is not ‘hot’ where you are, then hold off on buying a new house till it is off the market.
#4. Check your pocket
Remember, there are other expenses other than just buying a house. These include inspection costs, movers and surveying costs. Not to talk of taxes. All of which, must be paid up front.
#5. Hidden costs in old house
Even though you would be selling off a property, you will have to pay some things such as the real estate agents commission, moving expenses, and closing costs, to name a few. These have to be taken care of regardless of whether or not you want to buy a new house before selling off your current property.
#6. Is it yours?
If the house is entirely and solely yours, then it may be safe to buy another property before selling it off. However, you are strongly advised against this regardless of how safe you feel financially. Things happen!
#7. Make a choice
At the end of the day, it is all up to you so make sure to take your time and be very careful with your decision especially if you have others depending on you like parents, kids or siblings. Putting yourself in a financial predicament, will be very detrimental for you.
So please evaluate everything form the markets to your finances and make the most-informed choice.