ARE YOU WANTING TO SELL AND BUY A HOME
AT THE SAME TIME?
If you are looking to sell your home and purchase a new one, you really need to have a team of people working on your behalf, that includes your Realtor, Title Company and Lender. Now I have done this a number of times for my clients and communication is so important as is keeping everyone in the loop. This will ensure a stress free sale of your old home and purchase of your new home leaving you to only worry about packing and moving.
So what are the key tips to selling and buying at the same time. Well in a perfect world, you will get your home under contract and have a contract to purchase a new home simultaneously and close on the same day back to back. and you know what I have done this many times for my customers, but the world isn’t always perfect and delays can happen so you need to be ready for anything.
Now you probably want to look for a home first before you sell your home and that makes sense. It will give you a sense for what is out there and at what price point you will be purchasing. It’s important to do your research so you are better prepared going forward.
In the current sellers market, you will likely sell your home quickly but that means you will be a buyer in a market with less than a month of inventory. This will probably put you in a multiple offer situations and you may find yourself there many times before finally landing a contract to buy a home. The last thing you want is carry two mortgages and you may not be able to get a second mortgage if you are already carrying one so what can you do to protect yourself?
One option is to add a contingency on the sale of your home to find suitable housing, add an extra 60 days on top of the current closing date if needed just to give you that buffer. In a hot market like this most buyers would be willing to accommodate your needs as a seller in order to secure a home.
Another option is to leaseback until you have your new home purchase sorted. You can have your buyers close and then pay rent to them in the amount of their mortgage payment that way it doesn’t cost them anything. I’ve done this many times as well and it can work out well especially in a hot sellers market or if you as a seller have decided to build new construction and you are a few months out from completion. When you do something like this the buyer may require a deposit to sit in escrow and do a final walk through at the end of your lease term.
One other option is a bridge loan which would be a short-term loan that may be used to finance the purchase of the new property without selling your home first and if you need more info on this type of loan I’ll hook you up with my lender.
If you do not have a mortgage on your current home, another option especially in this market is to secure your new home before selling your home. This will make it the least stressful for you since you won’t have to worry logistically about the timing of it all and no having a home sale contingency added to your offer on a new home will be more competitive to ones that do in this current market.
HOW TO COMPETE IN MULTIPLE OFFERS
Now if you do decide to sell and buy at the same time, once your home is under contract you will want to get serious about looking for your new home and making an offer. If you have to sell your home before buying then you must add a home sale contingency to your offer. Depending on the market this can work just fine but in the current sellers market it is very difficult to compete with the buyers that do not have a home to sell first so make sure your other terms are appealing to the seller. That can be an AS IS contract, fast inspections, waiving the appraisal or accommodating the sellers closing needs.
Be prepared to share the contract you have on your home sale with the seller, they will want to see the terms of that contract and ensure it’s clean without a lot of contingencies because this type of deal is more complex When one thing goes wrong it’s a domino effect on all parties involved.
Once again it’s extremely important to have a good team on your side, if you are selling with one realtor and buying with another, put them in touch with each other so they can work out the logistics of both sides.
If you have any questions feel free to reach out by emailing me at [email protected] or calling (904) 747-0183.
If you are looking to sell your home and need some staging advice, check out my next video.
I hope you found this information helpful, I appreciate you tuning in and I’ll catch you on the next one.