Once you make the decision to build a luxury home, you have to decide what to do with your current home. Some homeowners are leery of contracting with a builder for the new home until the old home is sold. However, that can present problems of its own. If you are unsure of whether you should wait to build until the current home is sold or move forward with your plans, here is what you need to know.
Should You Wait?
There are several reasons why you should put off building your dream home until the current home is sold. For instance, not only are you faced with handling one major real estate transaction, you are now tasked with two. Since selling your home can have an impact on your ability to build a home, you could end up making compromises that you can cost you money.
Another reason to wait is there is no guarantee that your current home will be sold within the timeline needed. As a result, you could be saddled with two mortgage loans. The cost of carrying both loans could tie your finances in knots until the home is sold.
Should You Move Forward?
The decision to move forward with your new luxury home can present challenges, but many of them can be managed. For instance, if you move forward with your new home and are still unable to sell the old one, you can lease the old home to tenants.
By leasing the home, you retain your investment in it. At the same time, you have the cash flow needed to continue to make the mortgage payments on it. By charging a bit more than your mortgage, you have the funds needed to pay towards your taxes, insurance, and other related expenses. You can keep the home on the market while leasing it out.
Even though you will have to juggle two real estate transactions when you decide to move forward while working to sell your current home, you can rely on professional help to ease some of the burden. A real estate agent, professional builder, and real estate agent can help you cover every aspect of the building and selling process.
If you are still unsure whether moving forward with the new home or waiting until the old one is sold is the best move for you, consult with those involved in both transactions to further explore your options.