One of the hardest questions for home sellers is whether or not they should purchase a home before selling the one they have. What if someone bites when you first list your home for sale?
The truth is, there is no right answer for whether you should buy a home right away or not, as the decision will be based on your own unique circumstances and local market. However, if you’ve been unsure of how to proceed, these guidelines can help you determine whether you need a home right now, or if you’re willing to wait for the right one.
Are Your Finances In Order?
If you haven’t sold your property and don’t have cash on hand to buy a new one, you’ll need a mortgage, so your first steps should be seeing what you qualify for. Typically, you’ll need an excellent credit score and steady income just to qualify — then you’ll need to come up with the down payment.
Can You Cover The Down Payment?
Waiting until after you sell your home can make this lump sum much easier to part with, so you’ll need to have plenty of cash on hand should you wish to buy before you sell. Most lenders will ask for 20% down, so make sure you’re not getting into a potential bind financially, particularly when looking at higher-priced luxury real estate.
How Is Your Local Market?
When you buy a home before selling your current one, you’re counting on the sale going through. In a healthy market, like Southern California’s, you have a pretty good guarantee of a fast deal for a luxury property, but if your local market is slowing down or quiet, you could get into trouble.
Can You Afford Two Properties?
You can’t stop maintaining a property that’s up for sale, so you have to be sure that you can comfortably cover the cost of two properties before you make a move. Not to mention, staging an empty property can be in your favor, but having basic furnishings also helps a home seem more livable for prospective buyers. Will you take all of your furnishings with you before you sell?
Redlands California Homes for sale is run by Results Group. Jessica, Alan, and Justin have been part of this community since birth for some of them. If you are looking to sell a home, buy a home or just have questions about real estate in general in and around Redlands California such as Highland, San Bernardino, Yucaipa, Calimesa, Cherry Valley, Beaumont, Hinda, Moreno Valley, Bloomington or surrounding area, contact us at (909) 345-0909 or email us here. One call is all it will take for you to understand why we have top reviews and provide a zero pressure approach to real estate. Have an expert for all your Redlands California Homes for Sale and area for your real estate needs. Learn More About Us here.