Does it Makes Sense to Buy a New
House before Selling the Old One?
Aside from the economic benefit, other factors need to be considered; the lack of stress of moving
twice should the homeowner decide to sell the old house first and then purchase the new house; what
if the homeowner finds the house of his/her dreams now and does not want to let the house slip away?
In today’s market, sellers are not willing to take contingent offers. Can the homeowner budget for both
houses at the same time while waiting for the old house to sell? Is the market rising? Is the new house
more expensive than the old house? How long will it take to sell the old house? These are just some of
the issues to consider before deciding one way or the other; however, and this can’t be stressed
enough – when a homeowner finds a house they like, they do not want to lose the opportunity of
buying it. This means that they can start looking at new houses before putting their old house on the
market. This also allows them time to make any repairs or fix up their old house so as to maximize its
value prior to putting it on the market.
Once homeowners know that there is a potential to purchase a new house before selling their old
house, they can be proactive in obtaining a commitment letter from the lender. Of course, homeowners
should see if they qualify for a conventional loan for buying the new house [owning two houses at
once], but they should keep their minds open to procuring a private loan should the bank turn them
down. Pacific Private Money is such a private loan company. .
Written by Edward Brown