Expert Tips on How to Manage to Buy and Sell a House at the Same Time
A home is one of the best investments you can make. When properly maintained and managed, a home will only increase in value over time. Roughly 6 million people buy homes in the United States every year. When searching for a residential property, many consumers try to look for their forever home.
You need to realize that the older you get, the harder it will be to stay in the same home you raised a family in. Whether the size of your household is growing or shrinking, you will have to alter your living space to ensure your needs are being met. If you feel like it is time to sell your existing home, you need to plot out your next move.
Buying and selling a home at the same time can be challenging. However, you can make this process more manageable with a detailed game plan and the information in this article.
Start By Evaluating The Housing Market In Your Area
Before making rash decisions about buying or selling a home, you need to learn more about the real estate market in your local area. You need to realize that timing is one of the main factors you must consider when attempting to buy and sell a home simultaneously. You need to work with local real estate agents if you plan on selling in one market and buying in a completely different market.
A real estate agent will let you know whether you are operating in a buyer’s or seller’s market. A buyer’s market is a term that describes an area with more homes for sale than people attempting to buy them. Buying a new home in this market is easy, but you will have challenges selling your existing residence in a buyer’s market.
In a seller’s market, there will be more buyers than actual homes for sale in an area. This is the type of market you want when trying to sell your existing residence. However, you might want to wait to use the proceeds of this transaction to buy a new home. Home prices in a seller’s market are usually very inflated. This is why you might want to consider renting until the real estate pendulum swings back to a buyer’s market before making an offer on a new home.
Hiring a Real Estate Agent is Important
As previously mentioned, buying and selling a home simultaneously is a very complex process. Attempting to handle the work involved in this process alone is a recipe for disaster. This is why you need to hire an experienced real estate agent to help you out.
An experienced real estate agent can help you accurately price your existing home and help you make offers on new homes. Without the help of a real estate agent, you will have difficulty making the best offer on a home you like. Rather than missing out on a home, you like due to a lack of experience; you need to insist on using a reputable real estate agent in your area.
Before hiring a real estate agent to help you buy and sell a home at the same time, you need to conduct some interviews. During these interviews, you need to learn more about an agent's previous experience. Ideally, you want to work with an agent who has helped homeowners in similar situations.
Consider Buying a Home Before Selling
When trying to plan how you will buy and sell a home at the same time, you need to get a firm grasp on your finances. The more you know about the equity in your existing home and its resale value, the easier it will be to have success with this process. Knowing how much your home will sell in the current market can help you figure out how to approach buying a new residence.
If you currently have a mortgage, you need to find out the exact payoff amount. This financial figure will help you figure out how much you need to satisfy this loan and what you will have left over to put toward the purchase of your new home.
Submit an Offer With a Sale Contingency
You can make an offer on a new home before you sell your existing residence. However, you need to include a sale contingency in this offer to ensure you aren’t left holding the bag if your existing home doesn’t sell. Contingency offers typically work best in buyer’s markets because there isn’t a lot of competition for the real estate for sale in the area.
Bridge Loans Can Be Useful
If you feel like buying a home before selling your existing residence is the best fit, you should entertain the idea of getting a bridge loan. These short-term loans can help you cover the down payment on your new home until your existing home is sold. You need to realize that bridge loans can be hard to qualify for. Speaking with a trusted banker early on in this process is vital when trying to figure out what is needed to secure the bridge loan you need.
With some professional help and a well-thought-out plan, you can get through this process with a limited amount of stress.
More to Read: