Let’s talk about an ideal scenario: The weather is perfect, your job is going great, you’re satisfied with your neighbor’s new puppy. But your kid’s daily fight over sharing a bed of two between three, and now each want their separate room and some privacy. So, what to do now? Talk to your children about managing the circumstances. Would they understand? No, they are kids. Moving to a bigger place might be the best option you have now. You are planning to buy a new house, but of course, haven’t sold your current one yet. Purchasing a new house before selling the old one might not be a good idea, especially in today’s real estate market.
The best strategy is selling your current house, renting for the time being, then planning to buy your new dream house with enough rooms to make your kids happy. This approach makes you stable, both financially and emotionally. You won’t have any mortgage on an empty house; by taking things slowly, you will find a reasonable selling price, and in the end, have a topped up bank account.
However, an ideal scenario is not always possible, and you may have to buy a house when you haven’t sold yours. Here are 3 approaches to help you get out of this hamster wheel.
How To Buy A House When You Haven’t Sold Your Existing One
Rent Your Now Sold Existing House
This is, by far, one of the best strategies you can opt for. Firstly, sell your house to the new owners, and then ask them to rent it to you until you make your new house’s complete payments. This type of rent-agreement only stays put for one or two months. This approach saves you the trouble of finding and making agreements for renting a temporary residence. Your existing home is well known to you, and any trouble with it will not bother you a lot. But in case you rent some other place, and in a panic condition, you will never know if it has leaky pipelines, a blocked gutter, or malfunctioning electric circuits. And spending money on these fixtures seems no good.
Going With Temporary Residence
Chartering your old house is not always possible, so you may have to find another place to stay. This option isn’t that easy and economical, but it is a good short-term solution. Let’s suppose your new house needs some cabinetry work, or some electrical or sanitary issues require your attention. Rent a property and stay with ease until your renovation work gets completed.
Make Up A Contingency Plan
Including a contingency plan is a good way of keeping a safe side. When you are getting ready, the contract of your new home includes a contingency offer. A contingent sale plan provides room to holdback an offer if your current house doesn’t sell within a specific time frame or date.
If you ever need to buy a new house before selling your current one, consider the above and other possible approaches such as rental property loans and then choose one that suits you best. Our agents at Reddoor Funding can help you decide and follow the most practical approach. Get in touch with us today at 832-539-1099.