Florida being an income-tax-free state, many people want to relocate to it for obvious reasons. The state also offers generous tax benefits to small businesses, making it a lucrative place for entrepreneurs to move. If you want to relocate to Florida, consider hiring one of the trusted on-our-lot builders in Tampa to construct your dream home. However, if you already have a house, you may want to sell it off. Many in similar situations face a dilemma— should they first sell their old house and then start constructing the new one or vice versa? The answer is quite subjective and has a lot to do with your personality. Therefore, depending on whether you require a safety net or have the confidence to take risks, you need to plan your move carefully. One of the best ways to arrive at the ‘correct’ decision is by weighing the pros and cons of both the situations. We have done this for you below:
What Happens If You Sell Your House First?
When you sell your home before building a new one on a pre-owned lot, you effectively ensure that you do not end up with two mortgages (if that’s applicable) at the same time. However, there are some complications associated with this option.
Seeking Temporary Lodging
Selling off your existing house means you will have to look for a place to stay while your new home is under construction. Unless you find lodging with friends or family, you might have to take up a short-term rental. Or, if you have kids, you might have to choose temporary accommodations within the school district so that it does not inconvenience the children.
New Rules to Follow
Pay attention to the regulations before taking the final call on renting a place. For example, pet owners might not be able to find rentals that allow animals or may have certain restrictions even if they do.
Hassle of Moving Twice
As soon as you sell off your old place, you will have to move out and place your furniture and belongings in storage or take them to your rented apartment. Then, when the new building is completed, you will have to move again. Thus, you are practically moving twice, which means that your address is also going to be changed twice.
Building Your New Home First
If your present place is still on the market and you are in a position to handle two mortgages, then you should wait to sell your old home until the new building is complete. But, many people consider an additional mortgage to be a burden more than anything else. There is a way out, however, and it involves renting your old home once you move into the new house. You can use this rental income to cover the cost of the mortgage. You may also become eligible to avail a bridge loan to cover your expenses until you sell off the present home.
There are contractors who provide a contingency option if you are unable to find sellers for your current home. However, this means giving up on your dreams of owning a custom-designed home, not to mention a huge waste of time and money. Plus, you wouldn’t like it if someone else started living in the house you so painfully planned and created.
A reputed on-your-lot builder in Tampa is one of the best people to guide you through the process. Since they are in the business, they might have a better idea about the current state of the housing market in your locality and can guide you on the best course of action. You can even get an estimate of how long it will take to sell your home.