The Challenges of Transitioning From Current Home to a New Home
Planning Your Move to a New PDX Home Anytime Soon?
Whether you’ve outgrown your current home or you’re relocating to a new area for work, homebuyers frequently experience the challenge of transitioning to a new home. While the journey of finding a new house carries feelings of excitement and anticipation, the logistics of settling into a new place while you wrap up the financial, emotional, and legal obligations to your old home can be quite difficult.
One of the greatest challenges that a homeowner transitioning from a current home to a new place of residence often faces is the timeline of events. Homeowners who are moving to a new home must decide whether they should sell their current home and then buy another, or buy a new one and then sell the current home.
Of course, each option carries pros and cons, but it’s important that a variety of factors, such as financial options and local market conditions, inform the challenge of transitioning to a new home. Let’s take a closer look at who is experiencing the challenge of changing homes, and what strategies are available to ease this transition.
Who Is Experiencing This Home Transition Challenge?
Financially, homebuyers who are interested in moving-up, rather than purchasing a first-time home, tend to have more success in the real estate market. These trade-up buyers, or middle of the road buyers, are the ones looking to sell one home and purchase a new place.
Yet, while accessing homes on the market is easier for this middle of the road group, selling a previous home adds a new level of complication that first-time homebuyers don’t have to deal with. So how do middle of the road buyers navigate this tricky transition? Read on for strategies that can ease the challenge of moving from your current home to a new place.
Strategies to Ease the Challenges of Transitioning to a New Home
In Portland’s hot housing market, for example, if your financial resources are strong, it makes sense to buy first and sell later. As homes on the market are going quickly, it’s important to realize that the prospect of paying two mortgages for both your current place and your future home can be daunting, but there are definite advantages to this strategy.
Buying first and selling later brings advantages to those transitioning from one home to another in the following ways:
- You save yourself from feeling rushed. If you opt to buy a home prior to moving out of your old place, you’ll free up your timeline to hold out until you find exactly what you want. Buying early alleviates the pressure of finding a place to live, even if that new home is less than perfect, or just a place you’re settling for. You want your new home’s amenities to match your wish list as close as possible, so don’t rush. Instead, take the time to find a home in the right area, with the right number of rooms, at the right price point, by buying a new home before you sell your old place.
- You have added financial resources. Homeowners who decide to buy a new home before selling their old place are often eligible for financial benefits that smooth the transition process. The challenge of paying two mortgages may be unnerving, but if your credit is good and you hold enough equity in your current home, you may qualify for a bridge loan. Bridge loans address financial challenges for transitioning homeowners, as the loans provide access to down payment funds for those who haven’t yet sold their current home.
- You save yourself from the challenge of moving twice. If you sell before you buy, you may end up adding additional hardship to your move. You may first transition to a temporary home before ending up in your new home, which adds on extra moving costs and hassle. Build in flexibility to help smooth the transition between homes by buying first and selling only once.