In a hot real estate market, it is vital to make your move before your competitors do. If you have found your next house and currently own a property that you’re looking to sell, you might have to buy that property first before you can sell your house. It’s a high-risk move that can turn out well if you can make the right decisions. Here are tips in buying a home before selling your existing property.
Failing to plan is planning to fail. This move is a huge financial risk. You should lay out your plans and set a schedule for accomplishing the things you absolutely need to do. Having a plan helps you make the right decisions and keeps your stress levels low. Doing the exact opposite spells trouble. Not only can you lose your home and money, you can also lose your mind.
Have enough cash on hand
Buying a house involves a lot of money. When you’re looking to buy another property before selling your existing one, you must have enough money readily available in case your existing property don’t get sold right away. Having enough cash on hand also covers you from unforeseen expenses as a result of your decision.
Know how much you can realistically sell your existing property for
This helps you avoid making decisions that could hurt you financially. It filters and narrows down your choices. Knowing the figure that you can get for selling your existing property helps you buy another property within your budget. This eliminates the risk of losing any money or end up being homeless if your new property gets foreclosed as a result.
It’s always a good thing to prepare for the worse things that could happen. A contingency plan will guide you in case your prospective buyer cancels the deal at the last minute. A contingency plan also helps you identify the needed solution as things unfold. There’s no need to panic as you have already made the necessary arrangements for taking out an emergency loan or dealing with the next buyer on your agent’s prospect list.
Keep your eyes on the prize
Don’t get distracted or discouraged when things go wrong. Always keep your eye on the prize. Know that things will turn out for the better because you prepared long and hard before making this move. Always remember that the bigger the risk, the bigger the reward. This means buying your dream house and selling your existing property for top dollar in close succession.