If you’ve already had the home buying experience for the first time, then you likely remember the amount of time, energy, paperwork and patience required until you received the keys to your home. Buying another home while selling your current home can make you feel as if you’re going insane while walking a tightrope, but know that it is possible. Wyndham Capital Mortgage is here to answer the question, “how do I sell my house and buy another at the same time with a minimum of frustration?”
Get a Lay of the Market
Before you decide to go through with selling your home or looking into buying a new one, take a close look at the current real estate market in your neighborhood as well as the neighborhood in which you want to buy a home. Specifically, check to see whether it’s more of a buyer’s or seller’s market. This information goes a long way in helping you plan your strategy and achieve success in your buying/selling endeavor. As you’re checking out homes to buy, try to find multiple options in order that you don’t end up temporarily homeless in case your purchase falls through when your sell doesn’t.
Coordinate Your Buying and Selling Closing Dates
When you buy a house and sell a house at the same time, you want to prepare for one while you’re actively engaged in the other. For instance, if you feel it’s best that you buy your new home first, you want to prepare for selling your current property. This means addressing maintenance and appraisal issues, finding realtors to help sell your home, packing and finding home stagers to make your home more appealing to potential buyers. For selling your home first, you can prepare for your upcoming buy by cleaning up and building your credit score, noting which properties you like and exploring your mortgage options. By acting on one while preparing for the other, you stand a much better chance of lining up your selling and buying dates. That being said...
Be Aware of Possible Pitfalls
Even the best-laid plans can go off the rails, mainly because there are so many variables and circumstances that are simply out of your control. For instance, while you may find the perfect buyer for your home, he or she could have issues securing a mortgage. During the inspection of your current property, you may discover extensive and expensive issues that completely ruin your timetable. Even if you don’t mind renting for a while once you’ve sold your current home and wait for everything to go through on the home you want to buy, it’s still a possibility that you’ll be saddled with two mortgages. None of this is mentioned to give you anxiety, only to make you more aware of the eventualities you should prepare for.
Consider a Contract Contingency
Another strategy for deftly navigating the pitfalls involved with simultaneously buying and selling property is to include a contract contingency. When selling your home, such a contingency allows for the closing date to fall in line with the closing and finding date of your new property. For buying, contract contingencies make your purchase dependent upon the sale of your current residential property, which is often a great option for sellers who are having difficulties attracting buyers. To increase the chances of the seller agreeing to such a contingency, it’s best that you’re able to show why your current home is likely to sell quickly.
With the right approach and plenty of preparation, your simultaneous buy and sell are sure to be much easier. Be sure to use these suggestions to minimize your stress and maximize your chances for success. Have more questions? Let us help!