We all know that experience is something that makes a lot of things in our lives so much easier, regardless of what it is that we’re going through. However, the same thing really can’t be said for buying a home because the stress of both buying a selling a home only grows as time goes on. However, the more you’re careful with the entire process, the more you’ll begin to realize that it can actually be done.
The biggest thrill can take place during a same-day closing, which is when you close the deal on the sale of your current home while, at the same time, closing the deal on the purchase of your brand new home. However, the chances are often slim that this can happen. The best method is to first close the sale on your current home and wait for the transaction to complete before you begin searching for a new home, with the main upside being that you handle each transaction on its own. The only real downsides of this process are that you need to find a temporary place to stay, as well as move all of your belongings twice.
It also helps to admit the fact that you’ll essentially be facing all sorts of scary decisions that affect each other. The best thing that you can do is go through your home with your agent and work to identify any and all repairs that may need to be made in order to allow your home to sell faster. This is something that can give you a break from all of the various mental challenges that are involved with buying and selling a home at the same time. Here are a few other strategies that can help you throughout this process.
Obtain Expert Assistance
Many local real estate experts will be happy to assist you with researching the local market where you are currently buying and selling. However, the chances are great that you may be on the wrong side of the equation on one of the transactions that you’re involved in, and everyone else is sure to find out about it as a result. If you don’t plan on moving very far, consider using a local agent to help you buy and sell.
Borrow Only What You Need
Even if you’re able to make double mortgage payments, there is every chance that you will need as much money as possible from the sale of your old home to put towards a down payment on your new home. If so, consider asking family members if you can borrow the down payment money from them, or even try to obtain a loan from your bank. However, if you do choose to take out a loan, you must do so before you put your current home for sale on the market. This will help ensure that your credit is good. Either way, always speak to a lender before considering this option.
If you actually have found your dream home, chances are you may find yourself under a lot of pressure to sell your current home. So much pressure, in fact, that you either underprice it or accept an offer for it that would normally make you uncomfortable. In times like this, take a moment to step back and simply breathe. Afterwards, talk to your real estate agent about what the best steps to take should be.
Compose a Contingency Contract
This means that when you make an offer on a home, you’re agreeing to buy it; however, everything remains on hold until your current home actually sells. This is something that will usually work in a buyer’s market; however, if the market itself is hot, a seller won’t tie up their own home waiting for yours to sell. In fact, they’ll end up waiting for a few days for an offer that has no contingencies attached to it. On the other hand, if they do get a contingent offer for their home, they may not want to start a chain reaction of contingencies.
Look at Your Finances
Determine if you actually have enough money for a down payment on a new home without actually having to sell your current home first or if you can actually make two mortgage payments every few months. Always remember that you’re dealing with another seller and buyer and that things can still go wrong even if you have everything lined up as perfectly as possible.
Perform a Rent-Back
If you’re selling your home in a seller’s market where homes in a good price range are very hard to come by, consider asking for a “rent-back” provision, which means you will still be allowed to remain in your home for 60-90 days after it sells. However, there is still a cost in either daily rental or sales price to the new owners of the home.
Extend a Closing on Purchase
Similar to a contingency, yet without an actual contingency, this means that if you’ve found a home that you want and your agent feels you can sell your current home in a short amount of time, you can request that your current home’s closing be flexible for up to a few weeks later than the traditional 30-45 days. While the seller may request more earnest money, this will show that you are extremely serious. This will also provide you with more time to obtain extra financing in the event that you may not sell in time.