You’ re interested in moving. You need to sell your old house first before buying a new one, right? After all, you don’ t have enough of a down payment for the new house without selling the old one, and you are pretty certain your bank will not qualify you for two mortgages.
Does it Makes Sense to Buy a New House before Selling the Old One?
You are in a dilemma; houses in your area are currently receiving multiple offers. Inventory is low. Sure, you can sell your house under the same circumstances, but will you be able to identify a new house so that you can simultaneously move from the old house to the new one? Unlikely. Do you sell the current house, move to a rental [ or hotel ] while you identify and try and close on the new house? Is the extra hassle of moving twice and the added stress of the inability to simultaneously close on the sale and purchase the new worth it? IF you could purchase a new house while still living in the old house worth the added costs involved with having a second mortgage until you sell the old house? How much is“ peace of mind” worth in not having the pressure of having to purchase a new house [ because you sold the old house too soon ]?
These questions are a reality in today’ s world in many parts of the country, specifically, the San Francisco Bay Area, because of the real estate rebound after the Great Recession. Jeff states