For the move up buyer, these are very good points that should be given careful consideration. As always, you should consult your loan professional for specifics on the qualification process.
Should You Sell Your Charlotte Home Before Buying a New One?
When planning a move from your current Charlotte home, does it make the most sense to buy first or wait until your current property sells? There are multiple factors that go into that decision and this is most definitely an individual decision primarily based upon financial means. Below are a few pros and cons of each, to help you decide which factors are higher on your specific list of priorities.
BUY first if…
- It’s the Charlotte home you’ve always wanted. If you’ve absolutely found your dream house, you should consider buying it now — even if your current house hasn’t sold. You might regret it later if you let the opportunity pass you by. Just make sure the house is truly worth it.
- It’s too good of a deal to pass up. If you’ve researched the comparables and you know the home you want to buy is a great deal, then you should consider going ahead with the purchase. Waiting to sell might actually wind up costing you more in the long run if you lose out on this bargain.
- There’s more demand than supply. In a seller’s market (not right now in most communities here in Charlotte), you won’t need to worry about selling your property. What is the market absorption trend in your community?
- You have the money. Check with your real estate agent to find out how long it’s taking to sell homes comparable to yours these days. Then, do the math to determine if you have enough in savings to make the down payment on your new home and pay the mortgages of both homes while you’re waiting for your current home to sell. Work with your lender or financial planner to help you design a strategic plan.
SELL first if …
- You want to get the most money for your home. If you’re not in any hurry, you’ll be less tempted to take a lower offer. You also have more negotiating power. It’s hard to hold firm on a price, if you’re carrying two mortgages AND if the home is already vacant and the buyers know that you’re carrying two mortgages.
- You can include a contingency clause in your contract. Add a contingency that allows you to remain in your house until you close on a new property. It may be difficult to get the buyer to agree, but if they do, you’ll have plenty of time to find the perfect new house. This one may be very difficult to accomplish because you certainly do not want to lose a buyer in this real estate market just to be able to stay in your home longer.
- You can handle moving twice. If you sell your home first, you can always live in a short-term rental until you find your new place. Moving twice in a period of time less than 5 years is often quite traumatic though!
- You don’t want to be stressed about selling. The idea of carrying a second mortgage is enough to cause many people to reach for their blood pressure medication! To many, it’s simply not worth the stress involved in buying first.
Give me a call or email me if you need help deciding the right timing to buy or sell a Charlotte home.
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The opinions and general information in this blog are soley those of Kathy Sheehan. Specifics regarding an individual case should be discussed in detail with a loan professional. For a confidential consultation, please feel free to contact me via phone or email. All terms and conditions are subject to change.