When is it Best to Keep Your Old Home While Buying a New One?

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Managing the sale of a property while househunting for your new dream home can feel like a tricky balancing act. Many homeowners worry about what might happen if one sale goes through before the other – potentially leaving you with the financial burden of two mortgages and the logistical challenges of living between two homes. 

As a result, real estate professionals tend to advise against buying a new place until you’ve sold your old one. Sounds logical, right? Typically, sure! It may seem counterproductive, but there are certain circumstances when it is wiser to keep your old home while buying a new property. So, let’s take a look at some examples so you can choose the best strategy for your needs and goals. 

Finding your dream home

Let’s say you’ve just put your condominium unit on the market, and then you found your ideal house mere days into your search for a new place to live. But unfortunately, the current owners need to close on the sale fast – before you could realistically find a buyer for your condo. 

If it’s your dream home and, even better, a great deal, why miss out on that opportunity over a technicality? You may want to seriously consider making an offer before selling your current home in such a situation. 

Taking advantage of a seller’s market 

When there are more buyers seeking houses than there are homes available for sale, it may be advantageous for you to move forward in a timely fashion to buy a new property before selling your place to maintain your competitive edge. Given that it’s a seller’s market, you run less of a risk that your own home won’t sell because the demand is so high for housing. 

Accommodating your kids

Considering how hard it can be to clean up after your kids on a regular day, imagine having to maintain the pristine conditions required to stage a home for successful viewings! Even prospective buyers who have families expect clean, tidy, clutter-free open houses. If sellers fail to deliver on such details, it can negatively impact the offer negotiations. 

Purchasing a new house before putting yours on the market can make the selling process much smoother, moving your kids’ potential messes ahead of time. Plus, it also makes for an easier transition for your little ones! 

Avoiding a double-move

If your old house sells before you’ve found a new place to live, you’ll likely move twice – once to temporary housing after your current home closes and again when you purchase a new property. Moving is stressful, logistically tedious, time-consuming, and increasingly expensive. So why suffer twice when you could get it all over in one go? 

Planning home renovations

If you have your eye on a promising fixer-upper that needs renovations, or you wish to upgrade your old home to make it more marketable, it makes sense to keep both properties temporarily. That way, you have a guaranteed place to stay during the construction process without worrying about finding a third place to live in the short-term transition period. 

Strategic downsizing

Speaking of transitions, for many folks seeking to downsize, buying your new home before selling yours is a great option. It's the perfect opportunity to organize your belongings and clarify which items should come with you during the move. 

Whether you’re an empty-nester seeking a new start or a professional looking for a space with less maintenance, holding two mortgages in this scenario may be less expensive since you’re moving to a smaller place — giving you the time needed to process the change. 

Although the threat of simultaneously carrying two mortgages may be enough to deter some homeowners from buying a new property before selling their current home, the above situations may prove worth the risk! Ideally, if you do opt to try this strategy, it will only be temporary. And there are plenty of options for financial support to explore as needed. For everything else, there’s us! 

Interested in keeping your current home while buying a new property? We want to hear from you! Contact a Garman Group REALTOR® to get started today!