Are you looking to buy a new home but worried about selling your current house? Well, I have 7 tips that will help you get through the complicated process of getting out of one property and into another.
Moving can be stressful AND can even leave you homeless if you don’t plan well. Yes, I said homeless. Depending on when you close on both homes, you could have a period where you have to find other accommodations.
Here is an example of what can happen if you don’t strategize your move. You find a buyer and your home goes under contract. So far so good, right? Not really. The new buyers will likely want to close within 30 to 45 days. That gives you very little time to find a new home, complete inspections, close, and move in.
There is a RIGHT way to buy and sell at the same time. I am going to tell you how below.
Step 1: Know what you qualify for.
The first step is all about securing your financing. This can be done be contacting a mortgage lender to figure out if you even need to sell your existing home before obtaining financing to buy another. If you are able to qualify without selling your current home, you have a lot more flexibility and a lot less stress.
If you have to sell your existing home first, there are a few key things to consider like where will you put all of your belongings and should you look into temporary housing?
If you don’t have to sell your current home first, you can avoid some of the headache and transition more comfortably.
Step 2: Know the numbers.
I recommend preparing a net sheet with the help of your agent. They should be able to determine your walkaway net figure after subtracting the closing costs from the sale of your home.
Ask your agent for an honest analysis of your home’s worth. Don’t be shocked or upset if your realtor tells you a number slightly lower than your expected. You need to be prepared and realistic numbers from an industry expert will help.
Step 3: List your home for sale.
When you list your home, make sure you create a marketing plan that pulls out all of the stops. There should be great pictures, videos, and strategic positioning. You don’t have to start looking for your next home just yet because you need to sell your old one first. I know this sounds kind of confusing and counterintuitive, but the last thing you want to do is fall in love with a house you cannot yet buy only to see it sell to someone else.
Step 4: Keep an eye on showings.
Once your home is being shown to potential buyers, your agent should get an idea of whether an offer is coming or not. If you are receiving five showings a week, that is a pretty good indicator that you are close to getting an offer.
If you haven’t had that many showings, think about adjusting your price. You do NOT want your home to sit on the market for too long because this can give potential buyers the upper hand at the negotiating table. Create more demand by having a competitive price.
Step 5: Accept an offer.
Once you receive an offer, you really want to begin searching for your new home. I recommend negotiating a longer closing date to give you more flexibility. Closing dates are always up for debate. I would push for 60 days or more from the date of acceptance. This gives you more of a cushion when negotiating for your future home too.
Step 6: Get an offer accepted on your new home.
After your old house clears inspection, you want to put your new home under contract. The goal here should be to have your home purchase under contract about 35 days ahead of the anticipated closing date.
You want to give your lender time to make sure that your old debt has been paid so they can clear the funds for your new home.
Step 7: Close and Close!
Now you can see the amount of coordination that needs to be done for buying and selling simultaneously. While the process can be stressful, if you have the right team behind you, they can help set a plan in place.
To get more advice on how to buy and sell a home at the same time, contact me today.