How do I buy a new home when all my money is tied up in my current home?
First off, congratulations on taking the leap and getting into the housing market when you did, hopefully it is paying off! Generally speaking, it’s a smart move to put money into an asset rather than throw it away on rent.
So, Where do you start? You basically have two options!!
- Do I sell first?
- Do I buy first?
3 things to keep in mind:
- Look back at your goals and reach out to a Realtor to help create an ideal timeline.
- What type of market are we in? Is it a buyer’s market or a seller’s market? Understand how to stay protected and what risks or challenges may arise.
- Why are you wanting to move? Keeping in mind your motivation for the move will be important while going through this process.
Prep your home to sell, regardless of which route you intend to go. Do things like home inspections, cleaning, de-cluttering, and paint. Make your home “show-ready” and get necessary repairs or upgrades completed prior to making moves.
If we are in a seller’s market you will most likely need to sell first. You are going to be the popular kid getting your home sold BUT it could be challenging when you go to buy a new home. Are you willing to sell your home first before finding another?
If we are in a buyer’s market, you will have more properties to choose from; you may be able to buy a new home first, then try to sell your current house. The challenge in this scenario is competition. A buyer’s market is essentially a surplus of homes for sale, so you’ll want to make the house you’re selling stand out!
Understand how to stay protected with contingencies and inspections. Not sure what those are? We’ve got you covered! We’ll provide an explanation and guide you through each step.
If you have assets other than your home, the analysis can change dramatically.
Most importantly talk to your Realtor (hopefully that’s us) and figure out a plan crafted for you and the market where you live.