Selling Before Buying?
Are you Selling in order to Buy?
Both buying and selling a home are equally stressful, but what about when you are trying to coordinate both at the same time? There are a lot of moving parts, and the agents involved work together to insure the smoothest possible transactions for our clients.
Here are some things to think about to make your move as smooth as possible.
Simultaneous Closings
Truly simultaneous closings are rare these days, especially when financing is involved. Regulations put in place to protect consumers have made simultaneous, or double, closings very difficult to pull off.
Buying and selling concurrently means closings occur when a party is selling and buying properties at about the same time. If you wish to close on the sale of your home and the purchase of a new home back-to-back, the best scenario is to work with the same company for both transactions.
Usually the sale of your home is closed first, your mortgage is paid off, then the purchase of your new home is closed.
Selling Ahead of Buying
when Buying and selling concurrently, then selling your home ahead of buying is the most risk-free alternative. This way neither transaction is contingent on the other. However, this may require your family to make an extra move and have a place to live while you wait to close on a new home. So in terms of convenience and expense, it’s not always the best scenario.
Do you have the ability to secure a short-term rental, or to put your belongings in storage and stay with family? This will give you peace of mind, and take your time to look for and close on your new home.
One option that sometimes works out is to rent your home back from your buyers while you wait to close on your purchase. This works well when the buyers are not in a hurry to move in themselves and you can agree on a timeframe for you to remain in the home.
Buyers and Sellers
Consider your buyers and sellers carefully when trying to coordinate a sale and purchase within a short amount of time. The last thing you need is a seller or buyer who is displaying signs of being uncommitted to the deal.
No deal is guaranteed until all the closing documents have been signed. When you need a purchase or sale to coincide with your schedule, you should carefully evaluate who you sign a contract with.
Red Flags to look out for:
– A contract with contingencies on other deals going through
– A lender expressing doubt about final financing approval
– A low good faith deposit
– Buyers asking for unreasonable repairs or allowances
– Sellers whose moving plans are questionable
Buying and Selling – A Useful Guide
If you’ve been dreaming about buying a new home but you need to sell your current home first, this Buying & Selling Simultaneously Guide was made specifically for you.
In this guide, I dive into practical tips and advice to prepare for the sale of your current home while strategically purchasing your next one.
Whether you want to make moves today or are preparing for the future, you’ll gain insights and industry knowledge to have you handing over your keys, and accepting your new ones, in no time at all.