How to Sell Your House and Buy Another Simultaneously
Moving into a bigger and better home but need to sell first? This year many will make the move from their current home to their next home. But most people don’t know how it works and where to start. That’s where we come in.
Buying & Selling at the same time without the hassle is easier if you have a strategy.
We guide people with this type of sale all the time, it’s one of our specialties. Most recently, we’ve helped the Elliott family who decided to build their dream home and move in before we sold their existing home. Then we coordinated the timing of closing on the Zara's newly built home with the sale and closing of their existing home on the same day. The Reynolds family had their existing home ready to put on the market to sell when they found their dream home, so they were able to close on both homes simultaneously. It all starts with a strong strategy.
There are 4 Options When Buying and Selling
1. A home sale contingency allows you to submit an offer on another house, however if your house doesn't close then you are not bound to buying the new house. In a hot seller’s market, the homeowner of the new home you want to buy may want you to have your current home on the market for sale before they’ll consider accepting a contingent offer. This is a tricky one for many to understand, however we have great success with this option - contact me with questions as there are dates, deadlines and strategies that make this more attractive.
2. Many people can qualify for a new home, along with carrying their existing home mortgage until the existing home sells. This allows you to purchase the new home without selling your existing home. Then, once you sell your existing home, you can ask your mortgage company to ‘recast’ the loan on your new home. This allows you to take any profits made on your existing home and pay down the loan on your new home without the cost of refinancing or changing the interest rate on the loan. This is something many banks and mortgage companies won’t advertise because it’s not a real money-maker for them.
3. Not the most popular of the options, but it has its' merits…the double move. Sell your current home, then move into temporary housing until you find your next home. In some cases this is very beneficial. If the market is shifting and home prices are trending down, go ahead and sell your home to make the most amount of money now. Then wait until you find the right house to buy. This option can also be beneficial in a hot seller’s market when purchase offers based on a home sale contingency are not the most popular. It can give you more negotiating power to get a better deal on your new home.
4. You may possibly have a home that would make a great investment or rental property. If your finances allow, this can be a great option to build more wealth. The monthly cash flow and overall home appreciation could offer you the money needed for your kids’ college, retirement, or a way out out of the ‘rat race’ of your 9-5 job. This can be a great strategy. We have experience in helping people with the how-to's of owning investment properties.
Some of my tips...
*Have a Strategy. It's crucial to have a plan up front. Let’s meet to talk about what you’d like to do, then together we can come up with a plan that will be successful for you.
*Be Pre-Approved. "But I don't want to get approved until I find a house". The worst thing when house hunting is being unprepared when you find the right house. Going into an offer with a home sale contingency and without a pre-approval letter from your lender guarantees the seller won’t take your offer seriously. Some won’t look at your offer at all without knowing you have the ability to actually purchase the home.
*Get Your House Ready. Next to not being pre-approved for a loan, the second worse thing is to not have your house ready to sell when you find your dream home. If you need to make the offer on your new home contingent on the sale of your current home, many home owners won’t consider looking at your offer unless your current home is either actively on the market or already under contract. One of the services we offer is a professional staging consultant to give you tips for making your house stand out above the competition.
*Make Your Offer Irresistible. When submitting an offer based on the sale of your current home, you’ll want to make it hard for the homeowner to resist. This is where we step in. We have multiple strategies to help you get your dream home. There are many items to negotiate in a purchase contract besides the final sales price. Knowing these items can make your offer stand out to the seller above any offers.