If you need to buy and sell a home at the same time, there are four instances when it’s smarter to sell before you buy.
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There are four specific instances when it’s smarter to sell your current home before buying a new one:1. When you don’t want to risk carrying two mortgages. Speaking from experience, I can tell you that taking care of your family, paying your bills, and paying two mortgages at once is a tough task.
2. When you can’t qualify for two mortgages. If you have to carry two mortgages, your debt-to-income ratio will be much higher, and that will make it harder for you to qualify for a mortgage of similar value when purchasing your next home. Getting your first home sold can clear up your debt-to-income ratio and give you a better chance to write a competitive offer.
3. You’re buying in a competitive market. Being able to write an offer that’s free of any contingencies is fantastic, but it’s much tougher to negotiate with a seller when you tell them that your home has to sell first before you can write an offer. Put yourself in their shoes: Would you want to accept an offer that was contingent on another home selling? The risk there is substantial.
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Speaking from experience, I can tell you that taking care of your family, paying your bills, and paying two mortgages at once is a tough task.
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If you have any questions about this or any other real estate topic, don’t hesitate to reach out to me. I’d love to help you.
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