When you’re ready to move up and you’re looking for a Scottsdale golf course home for sale, should you sell the home you’re in first?
While every situation is different, the best course of action is to sell before you even start looking at homes – and here are five really good reasons to do so:
- You may have to carry two mortgages
- You need the financial freedom to qualify for a new mortgage
- You’re buying in a competitive market
- You’re selling in a slow market
- You haven’t fallen in love with a neighborhood or community yet
Should You Sell Before You Buy? Check Out These 5 Reasons it May Be a Good Idea
For many people, the best strategy is to sell before buying something new. Here are five reasons why selling first may be the wisest choice.
You May Have to Carry Two Mortgages
If you buy a new home before you have a signed purchase contract on your current home, there’s a real risk that you’ll have to make two mortgage payments – one for an empty house – indefinitely. While you may not feel the financial pinch, it can be frustrating to know you’re paying for something that nobody’s even using.
You Need the Financial Freedom to Qualify for a New Mortgage
You may need to free up your lending profile by selling your existing house. Lenders look for low debt-to-income ratios, and paying for your existing house may push you above the limit of what a lender is willing to accept – and even if your lender thinks it’s high but “doable,” you could be opening yourself up to higher interest rates and be forced to make a higher down payment than you want to make.
Sellers in a competitive market can pick and choose among buyers who put in offers. If your offer to purchase a home is contingent on your ability to buy the seller’s house, but someone else is ready to buy without that contingency, the seller could very well pick the other buyer over you. (If you were selling, you could do the same.)
You’re Selling in a Slow Market
If homes in your neighborhood or at your price point aren’t flying off the market, you can’t predict how quickly you’ll be able to find a qualified buyer. It could take a while to sell your home, which would bring you back to having to carry two mortgages, or it could mean that you’ll have to settle for less money than you expected when you sell – and that can affect your choice on buying a new home.
You Haven’t Fallen in Love With a Neighborhood or Community Yet
If you’re like a lot of people, you want to get the “feel” of a neighborhood or community before you make a 30-plus-year commitment. In cases like that, it’s best to rent a place temporarily to see whether the neighborhood or community is right for you. It’s a lot more cost-effective to kiss rent money goodbye than to buy a home in a neighborhood that just isn’t a good fit!
Are You Buying a Home for Sale in Scottsdale?
Ready to start exploring golf course communities in Scottsdale? Check out our:
- Desert Highlands homes for sale
- Dove Valley Ranch homes for sale
- FireRock homes for sale
- Kierland homes for sale
- Las Sendas homes for sale
- McCormick Ranch homes for sale
- Pinnacle Peak Country Club homes for sale
- Rio Verde homes for sale
- SunRidge Canyon homes for sale
You can also check out listings in all Scottsdale’s golf communities here.