There are various reasons you might move to another place and buy a new home even if you already own one. Some of them are new work or business opportunities, marriage, and separation. Others may fall in love with the place and decide to permanently move there. If you choose Essex as your permanent home, there are houses for sale in Essex that you can select from.
Since you have an existing house that you own, one question that you may have is if it’s best to sell your current property first before buying the new one, or if it should be the other way around. There are pros and cons to these two options, and we listed them below.
Selling the existing home first before buying the new one
- Budgeting is easier. Since you will only be paying for one mortgage, it will be easier to work on your budget. You can focus on working on your new home expenses instead of having to budget both.
- You know how much you can afford. Once you sell your old home, you will learn how much money you will have in your hand. It will determine the amount you can pay for the down payment and other costs in buying the home, including moving.
- Get the best rate if it’s a seller’s market. Seller’s market means that there are more home buyers than properties for sale. You can sell your property at a higher price during this time.
- The home you want to buy may be sold. If there is a new property that you have in mind, there is no guarantee that it will still be there after selling your old house. You might lose the chance of owning it if you don’t buy it first.
- Need for rental or temporary accommodation. You will need a temporary place to stay while looking for a new home to buy, and you don’t know until when you will be in this situation.
- Double costs on moving. Once you sold your home, you will spend on the cost of moving to your temporary place. You will do this again once you purchase a new home. It will also cost you time and effort.
Buying the new home first before selling the existing one
- The home you like will be yours. If you find a home that you love, you can be sure that it will be yours if you buy it, even if you didn’t sell your other home yet.
- You will only move once. There is also the convenience of having to move only once. You will save money, time, and energy on this.
- Get a reasonable rate if it’s a buyer’s market. A buyer’s market means that there are more homes for sale than the number of buyers, so you can get the new home at a competitive rate.
- You will pay two mortgages at the same time. There are two mortgages that you will be paying while you are trying to sell the old home.
- There will be pressure in selling your existing home. Because of the double expenses of having two properties, you might feel the pressure of having to sell your old house right away.
Weigh the pros and cons of these two options to determine which the better choice is for you.