Bridging financing?
My wife is musing about upgrading our home, but I'm not fully convinced. One of the big turn-offs for us is having to sell first, and then buy. I know that is "how it is done", but being pressured into buying something (or using storage, renting, etc. in the interim) is not appealing.
Enter "bridging financing". My mortgage person has said that we can carry a combined mortgage for both houses, and then we can decide whether to sell or keep as a revenue property. More than likely, the plan would be to buy, move, prepare the now-vacant house for sale for a few weeks, and then sell.
The obvious risk is a housing market crash, or even if things sag a little. This would not only reduce the sale price, but also the rental market if we decided to keep it for revenue. While these things are difficult to predict, my uneducated sense is that things are on the uptick again. Would you tend to agree?
As a realtor, are there any other considerations to talk me out of bridging financing? Is a vacant house easier or more difficult to sell? Is staging really that necessary?
I have only ever lived in two places - my parents' place until 22, and then in my current home for 15 years. And that purchase was with a builder. So I'm admittedly a bit lost when it comes to the pre-owned market, processes, etc. Thanks in advance!
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