Buying a home can be seriously stressful; so can selling a home. Selling and buying a home at the same time is enough to give you nightmares. Forty percent of Americans say buying a new property is the most stressful event in modern life, while 44 percent feel nervous during the home-buying process. It doesn't have to be this way. Not only does Wyndham Capital make the process less stressful with a convenient at-home process, but we've also made this helpful guide to provide you with five tips for buying and selling your home without any of the hassles.
#1 Buy a New Home Before Selling Your Old One
Most articles on the internet concentrate on buying a new home or selling your current one. Few websites talk about doing both. Should you sell your home first? Buy a home first? What about selling and buying a home at the same time?
Selling your home after you buy one can be risky. On one hand, there is a chance you will have to pay two mortgages for an extended amount of time if your home doesn’t sell quickly. However, it can provide you with lots of advantages.
First, you could make more profit on your home the later you sell it, especially in areas of the country where property prices are rising fast. You can also stay in your home if something goes wrong with the home-buying process — if you change your mind, for example. Finally, when it is a “seller's market,” meaning home inventory is low and there are many interested buyers, your home may sell quickly:
"Homes generally sell within days of hitting the market when inventory is reduced because there are many buyers, so there's less risk involved with buying first and selling second," says The Balance.
This isn't always the case, though. When selling and buying a home at the same time, it is important to work with a reputable real estate agent who understands the housing market well and provides you with advice on buying a home before selling based on your budget and circumstances. Plus, the right real estate agent can represent you as a seller and buyer. This streamlines communication and minimizes the number of housing professionals you have to work with along the way.
#2 Work Out Your Finances
Most homes don't sell because the buyer is unable to secure his or her finances — home loans, mortgages, and other financial products they need. Don't be one of these buyers. You need to work out your finances before you even think about looking at properties.
Budget carefully and have realistic expectations. Love that million-dollar mansion on the other side of town but only make $30,000 a year? It's probably not going to happen. Not yet, anyway.
Work out your income and expenditure and start talking to banks and financial institutions about how much you can afford. As you are selling your own home, you might need less capital than a first-time buyer, but you will likely still require some kind of credit if you are moving.
#3 Get Help From a Direct Lender
Using a direct mortgage lender can help you finance your big move, but you need to choose the right one. Remember, not all mortgage lenders are the same. You need to find a reputable company that offers competitive down payments and low interest rates. Don't forget about good customer service, either — great lenders will communicate with you during the home selling and buying process and provide you with all the help you need.
"Finding a mortgage lender involves more than just getting a good interest rate; you want to work with the best mortgage companies, staffed by professionals who will guide you through the process," says NerdWallet.
Working with a direct lender instead of a broker will provide you with numerous benefits. You could end up paying lower fees and reduce the time it takes to secure a home loan.
#4 Don't Stress
As previously mentioned, many Americans think that buying a home is life's most stressful event — trumping marriages, divorces and deaths. However, once you've found a great mortgage deal and located your perfect property, the rest should be pretty straightforward. You might only hear about the horror stories but, the truth is, most people buy and sell a home without any huge problems.
Still, it's important to keep a calm head during the moving process. Remember, this is a transition in life — and it's a positive one. There's no need to worry.
If you're still feeling anxious about selling and buying a home at the same time, here are some tips for relaxation:
- Take some time off work. It's difficult to juggle a move with a full-time job, so you might want to ask your boss if you can spend a couple of days at home while you sort out everything.
- Use mindfulness apps to destress.
- Exercise more. This can improve well-being.
- Communicate with your real estate agent. They are available to help you through the process and answer any questions you may have.
#5 Visit the Neighborhood
One of the biggest mistakes people make when selling and buying a home is not doing enough research. They might have their finances sorted but, when it comes to scouting out the local area, they completely forget.Checking out the local neighborhood where you plan to move is important for various reasons. You can find out the public transport links if you commute to work, for example. You can familiarize yourself with local stores, restaurants and other amenities. You can integrate with the community. This is going to be your home, after all.
Moving houses doesn't have to be as stressful as you think if you have the right people on your side, helping you along the way. This is where a knowledgeable real estate agent and a reputable lender, such as Wyndham Capital, come into play. With experience selling and buying a home at the same time, they can help ensure you transition homes in the most efficient way. When you are ready, follow the above five tips for buying and selling a home and you can save money, get the help you need, and you'll be on your way.
Want to experience a less-stressful mortgage process? Featuring automated pre-approvals, online document uploading, virtual closing days and much more. You'll see why Wyndham's entirely-digital process is a game-changer for the mortgage industry. Get started to start saving yourself money and from stress.