Your Complete Guide To Buying & Selling Simultaneously
Dreaming about a new home but need to sell your current home?
If you’ve been dreaming about buying a new home but you need to sell your current home first, this article was made specifically for you.
In this article, we’ll dive into practical tips and advice about preparing 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.
Buying & Selling Simultaneously
01. Start with the Numbers
Start by assessing your financial situation. Obtain a pre-approval for a mortgage to understand your budget for the new home. Determine the minimum amount needed from the sale of your current home to make the transition comfortably. Having a pre-approval letter in hand will also make your offers more attractive to sellers.
02. Lean on Professionals
Save yourself the stress and hassle by partnering with experienced professionals who specialize in simultaneous transactions. An experienced agent can provide valuable insights and guide you through potential challenges.
03. Prepare the Current Home
Invest in small repairs and maintenance that can enhance your home's appeal. Staging your home can create a welcoming atmosphere for potential buyers and increase its sale price. First impressions matter so ensure the home is clean, decluttered and well-presented.
04. Price it Right
Set a competitive and realistic price for your current home to attract potential buyers quickly. An agent will help you analyze the market and find the sweet spot for pricing.
05. Timing Matters
Coordinating the timing of your sale and purchase is important. With the help of an agent, aim to align the closing dates of both transactions as closely as possible. This could involve negotiating with buyers and sellers to extend or speed up closing dates.
06. Negotiate
With the help of an agent, tailor your negotiation approach based on market conditions. In a seller's market, you might have more leverage when selling, while in a buyer's market, you could have more power as a buyer. In this scenario, negotiating for a quick close, under 30 days, could be beneficial.
07. Contingency Clauses
When making offers on new homes, include contingency clauses. A sale contingency gives you the option to back out of a purchase if your current home doesn't sell within a specified time frame. Similarly, a buy contingency allows you to back out of selling your current home if you can't find a suitable new home.
08. Bridge Financing
If timing the sale and purchase is proving to be challenging, bridge financing could be an option to explore. This involves obtaining a short-term loan that covers the gap between buying a new home and selling the old one.
09. Backup Plans
Understand that perfect timing is rare. There might be a brief period where you don't have a home or need temporary housing. Have a backup plan in place, such as staying with family, renting a short-term apartment, leasebacks or using bridge financing.
10. Stay Organized
Keep all important documents, contracts, and communications in one place. This will make it easier to reference information and stay on top of deadlines. Maintain open and transparent communication with all parties involved to prevent misunderstandings and streamline the process.
If you have questions about the buying and selling journey please reach out! I’m always here to be a resource to you.
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