In many instances, the home buying experience is coupled with a home selling experience and, when the stars align perfectly, your possession dates will work out perfectly. It doesn’t happen often, and such a venture can be quite risky, so it’s important to know when you can afford to do so. If you’re considering buying a new home before selling your old one, here are some instances when it can be an okay idea.
1. You Have the Cash
Before any other reason, the only time you should consider having two homes at the same time is if you have the money to do so. Selling a home can take an indeterminate amount of time, from a few short weeks to the better part of a year. If you have a nice financial cushion to draw on, then the decision may be a good one. But if you don’t, it could lead to financial ruin.
2. You Found a Steal of a Deal
Every once in awhile, you will come across a listing that is simply too good to be true, especially at the price. The reasons for finding the deal can be many, but people liquidating great homes can work out in your favour, and see you getting a great home at an unbelievable deal. If you come across one such deal, it is important to make a prudent and responsible decision. But if you have the money and the chance, it may be a good idea to go for it.
3. That Deal is Also Your Dream Home
Many of us have our ideal homes in our heads. It may be just a sketch: a style, the number of rooms, how everything’s laid out, and even where it’s located. For others, it good be much more detailed. Either way, if you find your absolute dream home, the one you’ve been imagining for as long as you can remember, and it’s at an incredible price, it may be worth seriously considering. After all, such a moment is unlikely to happen twice.
4. The Market is in Your Favour
In general, a seller’s market is a great time to buy a new home while selling an old for the simple fact that you’ll make a little more money much more quickly. A buyer’s market, traditionally, makes the selling process more difficult and can lead to circumstances where you’ll be balancing two homes for much longer than expected. In the Edmonton real estate market right now, it is firmly a buyer’s market. That doesn’t necessarily mean there will be problems for you, but it does increase the chances of things not going exactly how you planned.
When you’re buying a new home before selling the old, it’s important to make a prudent and financially responsible decision. The most important factor is you have the money to do so. After that, it’s completely dependent on other factors. Be cautious when coming to your decision and you’ll be more likely to make one that works out best for you in the end.Posted by Gurpreet Ghatehora on