Finding a dream home or apartment is easiest at iNewHomes. Many people think about the question: can I buy another house before i sell mine? Of course, selling a home will free up more money. But many are afraid of the unknown. Therefore, people are afraid to spend even a small period of their life without their own homes. In this article, we will discuss the advantages and disadvantages of both options.
Before answering the question: do I need to sell my house before buying another, you definitely need to choose an object to buy. First, you need to decide on the state and city. If you love a warm climate, then you should definitely consider new homes in Florida. Now let’s talk about the pros and cons of all the methods of doing real estate transactions.
Pros of Investing In Real Estate
If you are going to buy liquid real estate in the United States, then it is better to have one where the whole family can live. By the way, these are the apartments that are in greatest demand in the country. Another thing is that not all Americans can afford to have their own home. And for people with money and without legal problems, finding a house in the States for permanent residence or sale will not be difficult. The American market is large, varied, and certainly stable.
Local real estate is adding in value every year. The rate of price growth depends, of course, on the situation in a particular state, but at least a minimal increase in the cost of housing is observed everywhere. An American apartment buyer should aim for a 1% -3% annual return. In most European countries, such incomes today cannot even be dreamed of.
The most popular type of real estate in the United States today is one that can be rented. In general, Americans are gradually abandoning the purchase of houses, preferring to rent a house without tying themselves to a specific territory or job. There are a lot of students, novice professionals and young families among the tenants. It is to this category of tenants that it will be possible in the future to rent out residential apartments purchased in the United States.
Advantages of Selling Before you Buy
The main advantage is that you have the money to buy a new home. Many people cannot afford to buy a new home and keep the old one. Potential sellers will seriously consider your candidacy, knowing that you have the right amount. This will help close the deal quickly.
The biggest problem with the initial sale and buying a new home only after that is the period of homelessness. During this period, you will have to rent a house or apartment. If the time between sale and purchase drags on, renting a home can become an additional expense in your budget.
Step 1: Assessing Your Capabilities And Choosing A Home
The procedure for buying real estate in the United States begins, first of all, with an assessment of your wishes and possibilities. Compare how much a house costs in the USA (in different regions of the country), think about whether you can pay the entire amount yourself or need to take out a loan, calculate the amount of additional expenses like paying for escrow services. Start looking at specific proposals. You will need an agent for this. He selects houses according to your requirements, arranges viewing and takes you around them.
Step 2: Preliminary “Bidding”
Let’s say you’ve found your dream home. Your agent is preparing an offer to purchase a house on certain conditions. In terms of price, the value of a home in the United States varies from state to state. The seller’s agent may disagree with the proposed terms and send a counter-offer. This can continue until both parties are satisfied with the terms of the purchase.
Step 3: Confirmation Of Solvency And Signing The Contract
Next, you need to confirm your solvency. This can be a letter or a statement from the bank that you have the amount on your account to buy a house and cover all additional costs, or a loan guarantee. Agents draw up a sales contract and arrange for its signing by the parties.
Step 4: Getting a Loan
If you are going to buy housing on credit, at this stage you need to submit an application and other necessary documents to the bank. In case of a positive decision, the bank will send you a letter indicating its readiness to issue a specific amount for the purchase of a specific house.
Step 5: Opening an Account
As a rule, the sale of houses in the United States is accompanied by the opening of an escrow account, through which all settlements take place. The buyer must also make a deposit as a guarantee of the seriousness of his intentions. At the same stage, various inspections of the house take place, the purpose of which is to detect possible faults and defects.
Step 6: Close Escrow and Get Keys
Buying a home in the United States ends with the closure of the escrow. When all the conditions under the agreement are met (all the necessary documents have been transferred), the escrow company transfers the money to the seller’s account. The agent of the latter hands over the keys to the buyer’s agent, who, in turn, hands them over to the newly-made happy owner of the house or apartment.