What is the process of buying a new home like when you already own one? It can be tricky, but there are several ways in which to go about it. Here are four different options you have if you want to juggle buying a home and selling another at the same time.
1. Keep the existing home and turn it into a rental property. Owning rental property is a great way to build wealth and we highly recommend it. However, you need to consult with your lender beforehand to see if it’s even an option.
2. Buy the new house first, then sell your old home. The main benefit of this is only having to move once. It makes the process a bit smoother and less risky, too. The downside is that you may have to carry two mortgages at once and there is generally a high financial risk involved. “It all depends on what kind of risk you are willing to take.”
3. Sell before buying the new house. This has the lowest financial risk, but it’s a risk nonetheless. In this case, you risk not being able to find the house you want before your home sale closes. However, you can likely negotiate a rent-back or extended closing.
4. Make a contingent offer on a home before selling. This is our preferred option because it’s the least financially risky. We won’t start the inspection or appraisal processes until we remove all our contingencies. This allows us to have the first right of refusal within 24 hours. If another offer comes in, we will have the opportunity to match or beat it.
If you have any questions for me about this topic or anything else related to real estate, give me a call or send me an email. I look forward to hearing from you.