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