The idea of selling your house can be stressful, all the more so if you are looking for another one at the same time. Selling your house before buying another has a lot of advantages but it can be very risky as well. A lot of people ask this question but there is no clear cut answer that can be applied to everyone. The best thing to do is to take a look at the advantages and disadvantages, to ensure that you make the right decision for your unique situation.
Things to consider
Before selling your house, you should first do your homework by finding a place first and know if your can afford it. Check the available mortgage and loans that you can acquire. Having a keen sense of the state of the market is very vital in trying to get a house. If you are not comfortable with all these, then selling your house first isn’t the best option for you.
Advantages of selling your house before buying one
Selling your house before getting another one enables you to have more money in your hands so as to get another one. This helps you to know your budget and you will be able to target how much you want to spend on getting a new house. In addition, with time on your hands you can evaluate the market and if prices are falling you can wait till its favorable before selling your house.
Disadvantages of selling your house before getting a new one
When you sell your house, you may be planning to buy a new house quickly but you might be disappointed by how slow things can get. Most people expect it to be a smooth transition but there will be a lot of paperwork to go through and most likely, a lot of delays. If you sell your house before getting a new one, you will have to find a temporal place to stay, probably with your family if you have any, and this can be a huge burden because you will have to spend more on rents. This could add to expenses even if it’s a short while before you get a new home.