Here are Some Tips to Buy New House While Having an Old One

Buying a new house is always a very challenging. There are many important factors you must keep in mind while choosing a new home. A well studied research and development plan plays a key role in helping one to decide for a new home.

Below are the three things that must be kept in mind while deciding for a new house:
To dispose the current house at a good price
Buying a new house at a reasonable and cheap price at the earliest
Get this done soon enough, smoothly
 
An unstable market condition may create trouble. Selling and buying at the same time can make the process complicated. In this situation, the real estate markets and the trends in the real estate must be comprehended well. If the market is in the trend for a buyer’s market, it is better to sell first. In a seller ’s market, buying first may be better, this will actually help in selling the real estate property at a much faster rate.

The pros and cons of selling first
Ideally, it is easier to sell first and then buy. To justify the statement; there are many supporting reasons. If you sell first and then buy a new house, you will a fair idea of exactly how much money you have to spend. It will then be possible and much easier to buy a new house once you have sold yours.

Selling your house is more suggestive. If you are buying a new house, it is easier to get a new mortgage, if you already sold your old home.  In this case, you will not have two mortgage payments due.

By doing such, you will not have many difficulties. This allows you to cut down your expenses. You are less likely to get caught short by over-extending yourself on your new home.

In the meantime, if you have time left between your already sold home and buying a new home you actually can think of moving into a hotel with your family and keep the furniture at some godown, however, this entire method can be very cost consuming . The seller can request the buyer to allow them to stay in their home till they find a new one.

With the increase in property prices, the buyer may have problems and there is a risk factor which he may face if there is a gap between sale and purchase. Sadly, this will result in getting less for your money as time goes by.

The Pros and cons of buying first
If money is not the factor and you are financially stable and can afford to buy a new house without disposing of the current one, there are many advantages.

There is an advantage for a buyer if he can afford two mortgages simultaneously. Many buyers want to buy a new home to get a better place to stay in.

It is always considered a worth buying another home purely in terms of investment to rent out or to enable you to rent out your first home and move into your second one.

But in such a case one cannot overlook the disadvantages associated with buying before you sell off. Buying first will lead you prepared for two mortgages. Be prepared towards paying off a loan until you sell off your home.

A sensible decision would be sold off the existing property as early as possible. You will always feel a great pressure to dispose of your current home. A critical financial moment can come up anytime. By taking this above decision one will always be at an advantageous position.

Accepting a lower price for the current house often leads to a more helpless situation for the seller.

A Certain unforeseen situation arises in the property market, more time should be kept in hand for the seller than he had been estimated to sell the first house.
To make the buying and selling process a smooth one, both buyer and seller should be well aware of the market trends and should study the existing situation very much well in advance. This will lead to an effective procedure of buying and selling.