The question of whether you should sell your existing home before buying new home is an age old question posed by many who are in the predicament of trying to buy a new house and have a current home that they need to sell as well. Of course this does not apply to new home buyers who are entering the market for the 1st time.
Many agents and professionals will tell you that the key to answering this question lies in the market itself. If the market is what is considered a “sellers” market, typically meaning that there is a shortage of inventory in a strong economy then the decision to buy 1st and sell after can be the right one.
What this means is that if there are very few homes for sale in your geographical area and there are many people looking to buy then the seller is in the driver’s seat and should be able to sell their home very quickly and for top dollar. This means that buying a new home 1st should pose little to no problems as the house you are selling will close before the home you purchased (provided you structure the deal that way) leaving you with only one home to pay for at a time.
However, when the market is reversed, meaning that there is a large amount of homes for sale and very few purchasers you could very well be stuck with trying to carry two houses should you be unable to sell after you have already bought. At this point you will have to attempt to get financing from the bank for two mortgages, a tough thing to do depending of course on your financial situation.
Another option can be to negotiate an offer that allows you to buy on the condition of selling your existing home; however, in a sellers’ market many sellers will not accept such and offer as this ties up their property in the event another offer comes through. So, buying or selling 1st will really be dependent on the current market you find yourself in.
REAL University’s Indiana real estate broker courses provides you with the comprehensive training you need to successfully pass the Indiana real estate exam. You will receive the education you need to fulfill your Indiana broker requirement and pass the Indiana state exam.
Indiana law requires you to complete 90 hours of education to qualify for the Indiana Broker License. This is an entry level license that allows the you to perform real estate related functions on behalf of the consumer, under the guidance of a managing broker.
After the educational component is completed successfully, you must pass the Indiana state real estate licensing exam in order to receive their Indiana broker license.
Our course fully prepares you for the specific objectives tested on the Indiana real estate exam. Register online now.