Can I Buy Another House Before I Sell Mine? Here's What You Should Know

You might have wondered "Can I buy another house before I sell mine?" Here's everything you should know before buying and selling.

In the US, most people stay in a home for 13 years on average.

Although this is quite a length of time, it means that eventually, everyone moves on. Even though they bought a house, their time with it comes to an end, and very few go back to renting — they want to buy a new house!

Buying and selling a house within the same period of time can very stressful. Most people sell their current house before buying a new one, to give them more financial leeway. 

The question many people ask is, "can I buy another house before I sell mine?" What if they found their dream house, but haven't listed their current one? 

Can It Be Done?

The answer is yes, buying a house before selling your own is very possible. However, there are various things to consider.

For example, you might want to have a sales contingency. This means if your own home doesn't sell by a certain date, you can back out of your own offer on another house.

While this might sound ideal, it means the other seller might not want to take a risk on you unless your house is very likely to sell quickly.

Your realtor might be able to convince them of that, but when all's said and done, a seller is more likely to accept an offer where they don't have to worry about the person backing out.

If you're going to go with a sales contingency, you want to make sure you have a good offer ready! 

You could also use a bridge loan to pay for the down payment on your new house, but these tend to be very high interest.

Whatever way you look at it, buying a home before selling is going to cost you more than taking the other route, and there's very likely no getting out of that.

Things like sales contingencies and bridge loans make buying a house very possible before you've sold your home, but it's a more difficult process. Before entertaining these ideas, you need to be very sure that buying before selling a home is worth it for you. 

The Advantages

Despite the difficulty of taking this route, there are many advantages to doing so. They might make it worth it for you. 

A Seller's Market

Existing in a seller's market means you can take advantage of it.

With demand for houses high and the supply low, your house is likely to sell fast as long as it's in decent condition and you don't need to stress too much about it being many weeks or months before you get offers.

You Need This Home

If you really love the home you have your eye on, whether because it's your dream home or a great deal, buying before selling means you can jump on it without waiting on the sale of your current house.

The process might be worth it for you.

No Chance of Not Having Somewhere to Stay

If you sell a house before buying, there might be a short period in which you have no home. If you have a lot of possessions, or kids and pets, this could be far too inconvenient for you.

Buying first means this won't happen. 

The Disadvantages

Although there are advantages to buying before selling, there are also disadvantages to take into account. They might make this idea undoable. 

It's Expensive

For many reasons, buying before selling a home is expensive. The main reason is that you're going to be stuck paying two mortgages until your home sells.

If you expect the house to sell quickly, this might not be much of a problem for you. However, the unexpected can always happen, and you might be paying two mortgages for months before you go back down to one. 

The Bank Might Be Reluctant to Approve

Because the bank is going to look at your debt to income ratio and you have a whole other mortgage, they might be reluctant to approve another loan. 

Even if you can prove that your house is likely to sell fast, they're going to want to see proof that you can afford to pay two mortgages for a while, just in case. They don't have to take any risks and likely don't want to. 

Your House Might Take a While to Sell

Even if money isn't an issue for you, maintaining two properties might be exhausting. When people are coming to see the house for showings, you'll have to keep the yard nice as well as the interior. 

If you don't have a lot of time on your hands, this might not be feasible for you. 

It's always important to hope for the best but prepare for the worst. Make sure you're ready for weeks of not selling, even if that's an unlikely scenario. 

Can I Buy Another House Before I Sell Mine? Yes, if You Take These Steps

People often ask, "can I buy another house before I sell mine?" and are disheartened to hear how expensive and time-consuming the process is.

Buying a house first sounds ideal because you don't have to worry about a period of having nowhere to live and can take your time when searching, but it's also likely to drain you of energy and money!

Still, if you have an eye on your dream house, it's doable — and might just be worth it.

If you're buying a new house in Franklin County or Fulton County, or looking to sell your home, contact us today and we can give you the best advice for your situation.