Buying and Selling Done Right
The decision to buy and sell a home at the same time is not for everyone. Sometimes this can be too stressful or you cannot financially afford to. However, if you are thinking of buying and selling a home at the same time it is important that you know what you are about to get yourself into.
Know the Market First
Before either putting your home or the market or searching for a new home it is important to know the current market. Once you are able to know and understand what is happening in the market you will be able to come up with a strategy; whether it is better to buy a new home first or sell your old home first.
Deciding whether to buy first or sell first you need to have a schedule and plan in place. Both situations have both risks and rewards. If you decide to sell your home first, it might make getting a mortgage for your new home easier however, it might also mean that you need to find a temporary place to live if the closing dates of both properties aren’t the same. If you decide to buy first, it will make moving easier but you might have to juggle having two mortgages for a certain amount of time.
In order to determine the best possible plan for you and your family, you might want to consider the following questions: “How can I make the move as easy as possible? Can I handle two mortgages? What if my home sells for less than its listing?”
Regardless of your decision make sure to carefully way out the pros and the cons to buying first or selling first. However, you also should consider other variables such as other buyers and sellers. You have to ensure that within your plan you have some flexible in case things don’t go according to your plan directly as most of the time they don’t.
Know Your Financial Situation
If you choose to buy a home first or sell a home first it is important that you know your financial situation and knows what you can afford to do. If you have a sales representative it might be a good idea to speak with them about your plan and they can get you into contact with the correct people in order to know and understand your financial solutions.If you are buying first there are two popular options which buyers tend to use:
1. Bridge loans: Bridge financing allows you to carry and own two homes at the same time. This is primarily used if you don’t have money for a second down payment. This is a short-term loan which is usually repaid once your original house sells firm and closes as many people use the money from their original home to pay for their new home.
2. Contract Contingency: Buyers can request that their new home purchase is dependent upon the sale of their old home. Typically in competitive real estate markets, this contingency doesn’t work as the sellers may have other offers on the table which don’t have this contingency.
If you have sold your original house before purchasing or finding a new home do not panic or rush to find one. You want to make sure that you absolutely love your new home and this is something you cannot rush. If you do rush you might end up regretting your decision to purchase that particular property. With a little bit of time and patience, you will find your dream home.
Buying and selling a home at the same time can and will be stressful-but if you carefully plan and consider all the possible outcomes you can limit some of the stress.