Sometimes buying a house before selling is necessary. This will, for example, be the case if you have a real crush when your house is not yet sold. But can you buy a house before selling? Is buying risky before buying a home? What is the protocol?
Why buy a house before selling yours?
Buying before selling your property may seem risky, but certain circumstances may require such risk.
You should know that buying a house before the sale of your old real estate can bring different advantages:
Then you will also have plenty of time to make the move and arrange the details of the new house to contact us Zoom Property.
Finally, you can facilitate the sale of your current home. After your move, your house for sale is clean and well cleared, which can help future buyers a better plan for the future. It also makes daily visits less disturbing.
In certain situations, buying a house before the sale of the previous one can have certain advantages … but be careful not to overlook the risks of such a decision.
Buying Before Selling: The Limits
However, it should not be overlooked that buying a house before the sale involves risks:
The main risk would be not to sell your old house on time. You may then be forced to pay two home loans at the same time (if your first home is not yet fully repaid).
Another limit is that your mortgage may be limited. The sale of a house generally allows you to profit from a good contribution, which can allow you to buy more expensive real estate.
If you are having financial difficulties, buying without having sold can put you in a very delicate situation, especially if you cannot sell your current home.
A final limitation is that you don’t necessarily know the value of your current home. If you realize too late that the cost of selling your home will be much lower than you originally expected, you could be in a complicated financial situation.
Concretely, buying before selling will be less risky in a very dynamic real estate environment, and in particular, if you’re current accommodation is already reimbursed at 100%.
If you do not have the resources in case of a problem or if you are not sure that you can sell quickly, it is better to avoid this risk as much as possible.
Note: to limit the risks, the safest option may be to rent a property between two dwellings. The main limitation, however, is that it requires two moves in a row.