Not sure where to start with buying a new home and selling your existing property? While handling two transactions at the same time requires more preparation and dedication throughout the process, it can be done successfully with the right knowledge and expertise. Throughout this article, discover practical home buying tips and home selling tips that will make your experience a success.
1. Set realistic goals
You won’t be able to complete both transactions in a week or two. A normal home sale or purchase usually takes between three to six months to complete. If you’re going to do both at once, you’ll need to set aside even more time.
Begin the process by thinking about whether you want to buy or sell first. There are pros and cons to either option. Selling first gives you the financial flexibility to shop for a new home without worrying about having multiple mortgage payments at one time. Alternatively, buying first ensures that there are no gaps in your living situation.
Whatever you decide to do, you’ll probably find it helpful to break the process down into smaller chunks. This can keep you from feeling overwhelmed. One way to tackle the process is to begin by getting your current home ready to sell. After you’re done making improvements and staging your home, you can look around to see what homes are currently available for sale. Once you go under contract to purchase a new home, you can place your existing property on the market. Ideally your home will quickly go under contract and you can plan each closing date as close together as possible. Some buyers have found that they can even do both closings in the same day so that they don’t have to figure out where to stay in the meantime. Things don’t always work out this perfectly, but the possibility exists.
2. Attend to your finances
If you’re thinking about buying first, you will need to contact your lender to determine whether or not you could carry two loans at one time. The main factor your lender will consider when assessing your financial situation is how long you could make both payments before it became a significant financial burden for you. You would also need to have enough money in savings to make a down payment and pay for closing costs without utilizing the money from selling your current home. There are some financial programs available to help ease the transition. If you feel like buying first is the best option for you, these may be options to look into.
3. Prepare your home to sell
As with any home sale, you will want to take some time to ensure your property is ready to go onto the market. Ask your realtor for a Comparative Market Analysis and start having conversations about where you might price your home. Make sure all home projects and renovations are completed so that you can receive the greatest ROI. Begin to think about how you could successfully market and stage your home to catch buyers’ attention. If time allows, order an inspection before you list your property so that you aren’t surprised by anything that comes up during the buyer’s option period. This is one of the most popular home selling tips you’ll hear from real estate experts.
4. Prepare to buy a home
There are also some steps to take in order to prepare for buying a new home. Get a pre-approval letter from your lender that details the type and amount of loan that you can qualify for. Make sure you set aside time to talk with multiple banks or groups since each lender will offer you a different interest rate. If you’re not satisfied with any of the offers that you receive, consider making a higher down payment or taking steps to improve your credit score. These are two of the ways that you can lower your monthly payment. You’ll also want to spend some time looking at homes online to get an idea of what you’re looking for in your new property. Take note about what features and amenities stand out to you and what preferences you could live without.
5. Decide where you’ll live in the meantime
If you plan to sell your current home first, you’ll need to have a contingency plan for where you’ll live after your current home sells and before you move into your new home. If you will only need housing for a few days, perhaps you can rent a hotel room or stay with a friend. If you’re going to need space for longer than a week, you may want to look at other long-term possibilities. Options include short-term rentals, or you can see if the buyer of your current home is willing to negotiate a rent-back agreement with you. This arrangement allows you to stay in the home for up to 60 days after closing. Most sellers find they don’t need this much time, and certainly not more than 60 days.
6. Choose a realtor who can handle both deals
Ideally you can work with the same realtor on both the sale and the purchase. Your realtor will understand the specific circumstances and nuances of each deal, and they will be able to act in your best interests. They won’t have to ask as many questions because they will understand the unique situation that you’re in.
Christina Linezo has plenty of experience handling multiple transactions at the same time. Her clients regularly laud her for her expert negotiation and communication skills. She knows how to effectively navigate through an ever-changing real estate market with poise and success. Reach out to Christina if you’re looking to buy or sell a home in the area.