While the prospect of paying two mortgages for your current home in Chicago land area and a new property across the country may seem scary there are some definite advantages to buying a house before selling your current home, given your circumstances, and ability to finance two homes at the same time.
Here are some considerations to help determine why to buy a house first before selling your current one.
- You enjoy knowing what is ahead of you. If you are the type of person who feels nervous leaping into the unknown, you may find you are more emotionally equipped to part with your current home when you know you have got your next place lined up.
- You have time to hold out for what you want. You will not feel rushed into settling for a home that is less than perfect just so you have somewhere to live. You will be able to wait for the perfect house, whether it’s in the perfect neighborhood, has a perfect layout, or is the perfect price (or all three!).
- You save on extra moving costs and hassle. If you sell your home before you buy the next one, you may wind up moving twice — first to temporary housing and then to your new home. If you buy first, you’ll need to move only once. If your temporary residence is small, like a studio apartment or a guest room in a friend’s house, you’ll also face storage fees for all your furnishings in limbo.
- You have a safety net. An offer is not as attractive to the sellers you are buying from, if it is contingent on the sale of your current home. Buying first allows you to put your next house under contract while still giving yourself extra time to find a buyer for your current home.
- Your next home is too good to pass up. You have found your dream home, and the seller is extremely motivated. If you love the home so much that you know you will regret letting this opportunity pass you by, then it could be worth buying your dream house first, then selling you current residence.