Buying a House Before You Sell Your Current Home
Sometimes it makes sense to buy a new home before you sell your current one – but that’s not the case for everyone. While buying first lets you focus on only one transaction at a time, which gives you time to find the perfect place to live, it might not be in the cards for you. If you buy a house before you sell your current home, you’ll have to:
- Qualify for an additional mortgage, and lenders will scrutinize your debt-to-income ratio
- Fund your down payment, which many buyers pull from the profits of a recently sold home
- Pay two mortgages – one on an empty home – until you sell your current house
Check out these FAQ about buying a house before you sell your current home to get a better look at your options.
Related: 5 essential tips for selling your golf course home in Scottsdale
FAQ on Buying a House Before You Sell Your Current Home
Many people would prefer to buy a house before selling a current home, but these are pretty common questions about the process:
- When should I sell my house and buy another one?
- How can I buy a house before mine is sold?
- Can you put an offer on a house if you haven’t sold yours?
- Can I avoid capital gains tax if I buy another house?
When should I sell my house and buy another one?
If you’ve outgrown your home – or if it’s simply too big for what you need right now – it’s a good time to start thinking about selling. You may want to buy a new home before you sell your current home, particularly if you’re in a buyer’s market. However, it may make more sense for you to sell your current home before you start looking for another. You should talk to a Scottsdale REALTOR® about your options and figure out what’s best for you.
How can I buy a house before mine is sold?
You can buy a house before you sell your current home, but you must remember that you may have to pay two mortgages until your original home sells. In some cases, that doesn’t take long at all – especially if you’ve priced the home properly and there are qualified buyers available for it – but in other cases, it may take a few (or more) months.
Related: 5 luxury home features to inspire your home search
Can you put an offer on a house if you haven’t sold yours?
You can put an offer on a home whenever you’re ready to – even if your current home hasn’t sold yet. Your REALTOR will be able to help you make an offer after you’re preapproved for a mortgage (or immediately if you have the cash to buy now).
Can I avoid capital gains tax if I buy another house?
You may be able to avoid capital gains tax if you buy another house after making a profit on your current home. However, every situation is different – and the only person who can give you good tax advice is a tax adviser. It’s best to talk with your tax professional before you assume that you’ll be able to avoid capital gains tax.
If you’re thinking about buying a house before you sell your current home, the best thing you can do is talk to a Scottsdale REALTOR who understands the market here – and who can help you make the right choices for your financial future. Your real estate agent can even help point you in the right direction for other help (such as tax professionals and accountants) when necessary.
Related: 7 local places that need you to donate household items before you move
Are You Buying a Golf Course Home for Sale in Scottsdale?
If you’re selling your home and buying another one, we’re here to help you. Call us at 480-405-4228 or fill out the form below to talk to a REALTOR now.
While you’re here, you can also check out:
- Anthem homes for sale
- Desert Highlands homes for sale
- Dove Valley Ranch homes for sale
- FireRock homes for sale
- Kierland homes for sale
- McDowell Mountain Ranch homes for sale
- Red Mountain Ranch homes for sale
- Scottsdale Country Club homes for sale
- Silverleaf homes for sale
- Tonto Verde homes for sale
- Whisper Rock homes for sale