As if buying a new home, along with all the negotiations that come with it, isn’t hard enough, trying to find that perfect balance point between selling your current home and buying your new one can be incredibly challenging. Ideally, you should be closing on your new home at the same time as your buyer is closing the deal on your home. But, as with many things in life, it doesn’t always happen this way. What if you find your new dream home before your old home sells or you haven’t even had a chance to list your current Pasadena home? The good news is that there are a few benefits to selling your old home first, starting with not missing out on your dream home. There are also a few disadvantages.
Advantages of Buying before You Sell
If you are lucky enough to be in a position to buy your next home before your current one sells, you should be able to take more time looking for the perfect Pasadena house. If you are lucky enough to have already found your dream home, being in this position also reduces the need for you to try and rush the sale of your home. This could mean you end up getting far closer to your asking price than you might if you were being forced to sell in a hurry.
If your current home needs a few repairs before you can place it on the market, not being forced to sell can help. Once you have your family firmly ensconced in your new home, you have a blank canvas to work with. You will be able to see everything that needs to be fixed and have the time to ensure the job is done right. Here again, this may result in a significantly higher selling price.
Disadvantages of Buying before You Sell
Just as there are certain advantages to being able to buy your new home in Pasadena before you sell your old one, there are a few disadvantages. The biggest disadvantages are financial in nature, which is most home buyers in Pasadena sell their old home first. To start with, you need to be financially able to make the mortgage payments on both homes until your old one sells. You will also need to have enough money to cover any repair or maintenance costs for both houses.
On top of this, any bank or mortgage company you approach about financing your new home is going go over your finances with a fine-tooth comb. The reality is that there are no certainties when it comes to selling a home in Pasadena. It could take months for your home to sell and you may not get what you are asking for it. Your lender needs to know without a doubt that you are going to be able to continue paying both mortgages, the taxes, and the cost of upkeep on both homes comfortably before they will even consider a loan.