In a perfect world, everyone who put their home on the market would wind up selling it in record time. The moment they closed on the house of their dreams and the moment their old home sells would be the same, if this was the case.
Ideal situations like the ones above are not what really happens, particularly right now when the economy has set it up to be a buyers market. There are often far more houses on the market than there are buyers willing to purchase at the price you`re asking. An issue arises if you happen to find a new home you would like to buy when your home still remains on the market unsold.
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Here are some things to consider if you end up in a scenario like this. The most blatant choice is not to purchase a new home until your own home sells, of course. It is probably the same for the seller of your prospective new house, as well, if the market is slow on your end. You will obviously be taking a risk if you don`t have the fiscal means of paying for two mortgages at once, so you should not overlook this option.
Your second option really just depends on your personal finances. If you really like the new house and want to put an offer on it, paying for two mortgages at once may become a reality. It`s possible to make the offer contingent on you selling your home, but a seller might balk at something like that and back out of the contract, as a result. If your job is stable and you have the financial means, this is a great choice.
One final option is to buy the other home and to rent out your current residence until it sells. A renter will pay your mortgage, making it possible for you to afford the mortgage on your new house. A prospect that may not be as easy as it sounds, is having to deal with being a landlord. And, if your tenants wind up not paying or damaging your property, you might be left in a worse situation than you were in when you first started. Prior to committing to any single option in particular, however, all of these are options that need to be considered thoroughly.
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