Moving is a daunting task. We take it for granted and it doesn’t normally begin with much chaos. You tend to shuttle yourself and your stuff from your parent’s house or a college dorm into a viable apartment, then maybe to another, then another. But when it comes to buying a house, this is where most of the financial risks come into movement. A move is really costly no matter how perfect you make it to be. There is no method to get rid of all the risk from selling away a residence and moving into another, but you can surely try your best to minimize the financial risks. See more info on what are those moves.
- Selling your home before closing the deal on a new place.
Many people do this in order to gain some money to sell the existing to buy the next one. But this is really a risky move. It is deemed as a common one. Experts say that when you say you are closing a deal when buying, then close all the way by signing and getting the keys before losing the existing home. If you are not buying your property after the closing of the existing home, then at least get it pre-approved for a mortgage. All you have to do is get a commitment from a bank that is able to lend you on the new buying, along with a clause stating that they have to see the closing statement from the very first sale in order to fulfill the closing requirements. If it is implemented right, you can easily close the deal of the first and buy the second on the very same day; sale took place in the morning and bought later in the day.
- Moving out of your home, so you can sell it more easily.
It is somewhat related to the risky move mentioned above. Probably, you might have decided on purpose to give away your apartment on rent, or you are moving in with one of your family members, while selling your home. It is deemed acceptable until and unless you are prepared that things may not happen as you want them to. One of the real estate agents had a seller who had zero mortgage but was manipulated into taking a loan to preserve all of her stuff then renting the property, as the original listing agent stated to the seller that the home will sell easily without your presence. Although the home wasn’t sold, but at least the seller had her own house to move back into.
- Never use your retirement money as a down payment.
One real estate agent in Jacksonville had many clients who liquidate their entire retirement to utilize it as a down payment to buy their new property by keeping in their mind that they will sell their existing property before they close the deal on the new home. Their purpose was to put the money back into the retirement fund using the profits gained from the sale before the penalty time for early withdrawal drops in. It was deemed a considerable risk.