Do you need to sell your current home in order to buy another? Are you wondering how you can compete against other buyers who don't have a home sale contingency? Do you feel overwhelmed by the tasks in front of you?
Whether your goal is to "down-size" or "up-size", you and your agent can make it happen by putting a proactive plan in place. Read on to learn our seven tips for selling and buying at the same time. By following these tips you'll be taking the necessary steps that will get you into your dream home.
7 Tips for Selling and Buying at the Same Time
Tip 1: Work proactively with your real estate agent so you're ready to sell your home as soon as you find the home you'd like to buy. This means getting your home staged and having your listing photos taken by a professional photographer well before you submit your offer to purchase. When you do submit your offer, your listing should be 100% ready to go. Your agent will start marketing your home immediately so you're able to sell it quickly and schedule both of your closings to occur on the same day.
Tip 2: Work proactively with a reliable, local lenderto get your financing plans in place. When you meet with your lender, investigate options that would allow you to write an offer without a home sale contingency. For example could you hold two mortgages for a very short period of time, if necessary? Could you tap into your home's equity for a down payment? Are you eligible for bridge financing? You'll increase your chances for success by taking some time up front to explore all of your financing options.
Tip 3: Consider writing an offer that isn't contingent upon the sale of your current home. After meeting with your lender, you may decide to write an offer without a home sale contingency in order to better compete against other buyers. However, if you've followed tip #1 above, your real estate agent should be able sell your home quickly and coordinate both of your closings to occur on the same day - so you never end up carrying two mortgages. Give us a call and we'll help you lay out a plan that works for your individual situation.
Tip 4: Consider writing a creative, cash offer in order to stand out against competing offers. A "cash offer" will help you make your offer even stronger. Do you have investment accounts that could be used to demonstrate proof of funds? Do you own your current home free and clear and could you use your home's equity to show evidence of funds? If the answer to either of these questions is "yes", then you might decide to write a cash offer even though your plan is to finance with a mortgage. Contact us to discuss the details for putting this type of offer in place.
Tip 5: Break your selling and buying plans into pieces. Depending on your situation, you may decide to sell your current home and then secure temporary housing by moving in with a relative or entering into a short-term lease. Once you're in your temporary home, you can begin your home buying plan in earnest. When you do find the right home, you'll be able to submit a competitive offer which doesn't include a home sale contingency. Some buyers prefer this approach because they don't want the pressure of selling and buying at the same time. Others choose this approach because it gives them time to save up for a larger down payment.
Tip 6: Add unlisted properties to your buying plan. Buying an unlisted (or off-market) property gives you the opportunity to write an offer without any competition from other buyers. To carry out this plan you'll need to work with a real estate agent who has the expertise and resources to help you locate the right off-market property.
Tip 7: Consider building your next home. Building a home is another way to buy without competition from other parties.
Do you have questions about how to move forward with your selling and buying plan? Contact us and tell us more about your individual situation. We'll help you put a plan in place that will get you into your dream home.
This article is published courtesy of: Dan Miller, REALTOR Mad City Dream Homes & RE/MAX Preferred