Skip to main content

Real Estate Advisor: March 2019: Selling And Buying At The Same Time

Real Estate Advisor: March 2019

 Buying a home is exciting whether it’s your first home or your fifth. But while buying a home can be a real adventure, many owners put their home on the market while trying to find a new house. As a homeowner, you can try to sell while looking for something new, but it can get a little tricky. Read on for tips on how to make this process as smooth as possible.

EVALUATE YOUR LOCAL MARKET


It would seem like selling your home before putting an offer on a different one would be the best option when it comes to buying/selling, but it can really depend on the local real estate market. If you have the time, research the market in your city or desired area. This will let you know whether it’s a buyer or seller market. The type of real estate market in your locale can really dictate whether or not the process will be quick or drawn out.

The general rule of thumb is to sell first in a buyer’s market, and buy first in a seller’s market; but this isn’t always the case since every experience is unique. You can really get an understanding of what might work best for you by talking to your trusted real estate agent - s/he will know the market and will be able to provide insight on current trends.


UNDERSTAND YOUR FINANCES


When it comes to buying or selling a house, finances are a huge part of both transactions. Whether you’re looking to sell or looking to buy, knowing your current financial situation is vital to your next steps.

If you currently own, one of the first steps you should complete is researching the equity in your home. You'll want to know how much your home will sell for in your current real estate market. Don't be afraid to have an inspection done to understand what repairs or work may need to be done on your house as this will help you understand how much you may need to deduct from the possible sale price or any concessions you may need to make for a future buyer.
If you have a mortgage loan, you will absolutely want to know how much equity you have in your home. The equity that has built up could be enough for a down payment on another home. It’s important to remember, though, that any equity is only accessible after closing.

UTILIZE A CONTINGENCY


Ideally, you would sell your home on the same day as buying a new one. Since this is not the case for most buyers/sellers, adding a contingency into the contract can be very helpful. It's important to note that the term 'contingency' can have different meanings throughout the US. In this case a contingency is referring to a provision for an unforeseen event or circumstance when it comes to the financial ability to close a purchase sale.

If you want to buy before selling, make an offer with a home sale contingency, which means you will buy the new home once your current residence sells. You can also request an extended closing (if you’re certain your home will sell), which extends your closing past the typical standard of 30-45 days.
If you want to sell before buying, you can make an offer with a settlement contingency. This contingency works when you have an offer on your home, and you want to buy another which means you'll buy the home contingent on the sale of your existing home.
If you happen to sell and haven't made an offer on another home, you can sign a rent-back, which means you go through with the sale of your home, but you rent the home back from the new owners for a specific time, giving you time to find a new home or make other living arrangements.
There are pluses and minuses of both selling your home before buying, and buying a home before selling. Remember to do your research beforehand, consult your agent on your local real estate market, and if you need to, include a contingency in your contract.

Comments

Post a Comment

Popular posts from this blog

Home Buying Tip: How To Save Up For A House

Are you thinking about buying a home and just don’t know where to start? Before you even begin looking at homes, consider how much you may need to save to make the process as smooth as possible for you, especially in the long run. While there are situations where you don’t need a large down payment for a home, having one can save you money down the road.  Saving for a down payment is slightly different than other large savings, like retirement. With those savings, you can set aside smaller amounts or invest the money. Because you will need your down payment sooner rather than later, those saving methods won’t be beneficial to you. Here are some steps to take to save up for your dream home! 1. Determine How Much You Need There is a general rule of thumb in real estate, the rule of 28, that says your maximum mortgage payment should not exceed 28% of your gross monthly income. Sitting down with a mortgage lender will help you find out how much of a mortgage you qualify for ba...
Post a Comment
Read more

Add Charm To Your Bedroom

With a new season upon us, you might be wanting to spruce up your bedroom to add a little charm and "newness" to your space.   Therefore, here are some easy ways you can add some charm and beauty to your sleeping quarters.   1. BEDROOM FURNITURE Your bedroom furniture is what makes the biggest impression on you, first thing in the morning, and at the end of each day. You'll want to add pieces to your bedroom that you'll love, unique pieces that add character and charm to your personal space. Canopy Beds A modern style canopy bed can add a lot of simple beauty into your bedroom. Use a four-poster frame that is clean and matches your current finishes. A simple design allows you to dress up the bed as you please. Keep it clean for a masculine touch, or add a soft look by hanging gauzy panels.  Daybed Have an empty corner in your bedroom? You can consider adding a traditional style daybed and bring it to life with an elegant French countryside fl...
Post a Comment
Read more