Selling and Buying: Where Do You Start?
Are you looking to sell your home and buy a new one at the same time?
There are a few reasons you may fall into this situation.
Out of space and looking for your forever or next chapter home.
Maybe your home is too big and it's time to consolidate.
Moving to a new out-of-town area location for work or pleasure.
When you're ready, we'll be here to walk you through the steps.
Are you in the position to sell before you buy?
When at all possible, sell before you buy. This is the simplest way to know exactly when your closing date will fall and how much you will have to have for a down payment. If that’s not an option for you, then here are some tips to consider.
If your property is in an area and price range with high buyer demand, we could negotiate for a longer closing timeframe. You could also offer to rent the property back from the new owners after closing to allow time to find your next home.
A Suitable Housing Contingency
This allows you to market your home and select a buyer with a contingency in the purchase contract that specifies a period of time for you to find your next home or terminate the sale if necessary. Be warned - this does limit the number of buyers who will consider you a serious seller. But for those who aren't in a rush, you could be their best choice.
A Home Sale Contingency
This allows you to submit an offer on another house that is contingent upon you closing on your current house first. If your current house doesn't close on time, you are not bound to buying the new house. This is a tricky one for many to understand and MLS rules vary regarding the contract clauses.
When at all possible, list your house BEFORE submitting your offer on the next one, even if it’s the same day. It shows sincerity and motivation. To protect yourself, utilize the suitable housing & home sale contingency options.
Would you rather purchase first, then sell?
Talk to a trusted and experienced lender. They will be able to check your qualification status and inform you if you are able to buy and then sell. If you need a lender you will love, ask us for recommendations!
The easiest route is to use an existing savings account for your down payment. People often borrow against a 401K or retirement account. We even see people borrow from parents and repay them at closing. This allows you to buy your new home first, and then sell your existing home after you have moved out, minimizing stress, strain and potential anxiety. You can take time to clean, freshen up paint, complete any work that would enhance the value and sell for a stronger price. Also, selling after you have moved out and utilizing virtual staging can dramatically modernize a home and attract more buyers.
A home equity line of credit may allow you to access money for your down payment, then pay it off when your home sells, assuming you are qualified by a lender to do so. Need a trusted lender? We can make some suggestions.
Should you rent it?
If you own existing property and can buy your next home without selling, consider whether your home makes sense to rent profitably. Our team can share what the norm is for rental pricing, terms and management costs.
Be ready for the market at all times during this process. That doesn't mean you can't continue to live in your house, but it does mean you should keep up with landscaping, repairs and maintenance items as they come up. We can do a preview of your property to formulate a plan for any updates or repairs needed to be market-ready. The minute your dream house hits the market, you don't want to be too far from show-ready to obtain it in a short turn around time. Often we'll suggest having photos and video done in advance so the minute we find "the one", your house is ready to post in just moments as opposed to days.
As we get started searching for your new home, I will be collecting names and contact information of serious, qualified buyers who will be candidates to buy your current house the moment you are ready to move. Think coming-soon marketing, word of mouth advertising and strategic partnerships with other houses for sale in similar price point, areas or with comparable amenities. Don't wait to stir up interest - we're ready to start today if you are!
Our client processes.
Don't forget to check out our real estate selling experience information.
Purchasing a home?
We've got your buyer concerns and questions covered.