Should you buy a home before selling yours?
Whether you are planning on buying a bigger home in [Profile.market], or a smaller one, you may not know whether you should be buying a new [Profile.market] home first or selling your current home before purchasing a new one. This can cause quite a dilemma for some people, and here are a few things you should know about it.
There is a clause that can be put into the purchase agreement called a “home of choice clause”. This clause allows you to find a suitable [Profile.market] home to buy within a stated time period. The usual time frame for such a clause is thirty days, but they can run up to 120 days. This gives you the chance to sell your home in [Profile.market] without the pressure of having to find a new one fast.
You can also apply for a bridge loan. This type of loan is usually only available to people that have excellent credit and have been able to build up significant equity in their [Profile.market] home. You will be able to borrow money from your home equity, up to 80%, for a period of six months. This allows you to make a down payment on the new home in [Profile.market] while putting your current home up for sale on the market.
You may also qualify for a line of credit on your home equity. Again, you will need to have a lot of equity to borrow from. You will have to look at the financial strategy of doing this, and plan whether you will have enough money left over to meet the demands of two mortgages should your current house in [Profile.market] not sell quickly once it has been listed.
These are a few of the different tactics you can use when you are faced with the dilemma of buying a new Sarasota Florida home first or selling the one you currently own before making the purchase. You can talk to your Sarasota Florida real estate agent who will tell you the advantages and disadvantages of both, and be able to make a recommendation based on your own personal financial situation.
Stephanie Burwood is a REALTOR. She specializes in selling sarasota homes.