In a perfect world, everyone who puts their home on the market ends up selling it in record time. If not that, then anyone trying to sell their home will do so at the exact moment they close on the house of their dreams.
Ideal scenarios like the ones above are not what reality is made of, particularly right now when the economy has set it up to be a buyers market. There are often too many homes on the market compared to buyers who are looking to purchase, and the price you're asking might be too high. A problem arises if you happen to find a new home you'd like to purchase when your house still remains on the market unsold.
Here are some factors to look over if you end up in a situation like this. The most obvious choice is not to buy a new house until your own house sells, of course. If you're not finding a buyer, it's always possible the seller of the home you'd like to purchase is in the same situation. You'll obviously be taking a risk if you don't have the financial means of paying for two mortgages at once, so you should never overlook this option.
Dependent on your finances entirely is the second option. You might have to foot the bill on two mortgages at once if you choose to put an offer on another house while yours is still on the market. Although a seller might back out of the contract as a result, it is also possible to make the offer contingent on you selling your own home. This is a good choice if your job is stable and you have the financial means.
One last option is to buy the other house and to rent out your current residence until it sells. This allows you to have someone else pay your other mortgage for you, which is less of a burden on your finances. You also have to deal with being a landlord, however, a prospect that might not be as simple as it sounds. And, if your tenants end up not paying or damaging your property, you might be left in a worse situation than you were in when you first started. All of these, however, are options that should be considered thoroughly before committing to any single one in particular.
Ideal scenarios like the ones above are not what reality is made of, particularly right now when the economy has set it up to be a buyers market. There are often too many homes on the market compared to buyers who are looking to purchase, and the price you're asking might be too high. A problem arises if you happen to find a new home you'd like to purchase when your house still remains on the market unsold.
Here are some factors to look over if you end up in a situation like this. The most obvious choice is not to buy a new house until your own house sells, of course. If you're not finding a buyer, it's always possible the seller of the home you'd like to purchase is in the same situation. You'll obviously be taking a risk if you don't have the financial means of paying for two mortgages at once, so you should never overlook this option.
Dependent on your finances entirely is the second option. You might have to foot the bill on two mortgages at once if you choose to put an offer on another house while yours is still on the market. Although a seller might back out of the contract as a result, it is also possible to make the offer contingent on you selling your own home. This is a good choice if your job is stable and you have the financial means.
One last option is to buy the other house and to rent out your current residence until it sells. This allows you to have someone else pay your other mortgage for you, which is less of a burden on your finances. You also have to deal with being a landlord, however, a prospect that might not be as simple as it sounds. And, if your tenants end up not paying or damaging your property, you might be left in a worse situation than you were in when you first started. All of these, however, are options that should be considered thoroughly before committing to any single one in particular.
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