Buying a New Home While Selling Your Old Home
If you own a piece of property in a competitive market, though you are looking to upgrade homes within the same neighborhood, you might want to consider buying a new home before selling your current home.
Of course, there are a few risks to consider during this process, though homeowners with solid financial nests tend to make things work. Whether you want to put down a small down payment, receive a gift, or utilize the equity in your current home, you need to make sure you have a complete understanding of the financial implications.
Here are the top 3 ways that you can buy a new home while selling your old home. But first…
Never Start With an Offer
Even if you decide to keep your existing home, every new home purchase should start out with a personal financial review. You need to sit down with your lender and discuss your current situation prior to making an offer.
Follow the steps below to determine whether or not you can purchase a new home while holding onto your old one.
Get Your Budget Together
Sit down with a financial advisor and discuss your current situation while reviewing your financials. Find a new target home budget that doesn’t feel out of reach and integrate it into your potential monthly payments after your old home has been sold.
To determine your budget, make sure to consider the amount of available cash you have to make a down payment, as well as your liquid assets.
Buyers in these situations tend to require non-conforming loans or “jumbo mortgages.” Many lenders require a 20% down payment minimum on these types of loans.
Research Your Home
Once you have decided on your budget, you need to do some online research to see what is available within your budget range. We always suggest that buyers attend a variety of open houses to get a better sense of what they can purchase.
In doing so, you might need to reconsider what you need, redo your budget, 0r make an evaluation as to whether or not you can actually stay in your neighborhood.
Speak With Professionals
To find the right fit for the process, it is important to meet with multiple real estate agents. Request market assessments for your home from multiple real estate agents and work together to derive a marketing strategy.
There is no “uniform price” for a single home that you will get from different agents, which is why it is so crucial to get an array of opinions.
If your plan is to buy and sell at the same time, using the same real estate agent probably makes the most sense. Agents used for both buying and selling often cut back on fees and provide closing credits.
Make sure to inquire with your agent about any necessary repairs or upgrades that you need to make before selling. Ask them a few questions, including:
- How long will it take to sell my home?
- Are there any notable damages I must take care of first?
- Can I use contingency to sell my existing home?
The other option would be to sell to a company like National Cash Offer. We work to simplify the process of buying or selling so that you can focus on the things that truly matter. Make sure to get in touch with us regarding any real estate questions you may have.