Tips on how to sell your home and buy a home in 2020
Top 10 tips of how to move houses in 2020. How to sell your home and buy a home
Selling a house while buying your next can be hectic especially if your closings do not align or if the process takes longer than anticipated.
Buying and selling simultaneously is stressful particularly if you need the funds from the current sale of your home to facilitate the purchase of the new house. Patience is key, however, planning and working with savvy real estate agents can help to make the process smooth.
There are tips that can help you manage the process and at the same time keep your sanity intact. Here are top ten tips of how to sell your home and buy a home
Have a Team
Buying and selling a house involves many steps and paperwork. Hiring experienced professionals is important as they will provide guidance all through the process. Skilled real estate agents provides a realistic estimate of the prices in the area and takes you through on how you should price your current home. With that figure, it is easier to calculate equity and the net proceeds making it easy to apply the money toward the down payment and closing costs of the new home.
Using the same real estate agents and attorneys, if required, for both the sale and purchase, makes the process run smoothly.
Evaluate your financial position
If it were for your plans, you would prefer selling your house in the morning and close on your purchase in the afternoon or within a couple of days. However, things may not go as planned. The process might lack the necessary funds to close on your next home, end up paying two mortgages for a longer period, or be unable to finalize the approval of mortgage and prospectively lose the next home.
A contingency plan is important in this case since it offers an escape route if the sale of the current home fall through. A financial contingency should also be considered in case loan approval hinges on the sale of the current home.
Fix your home before selling
It is important to ensure that repairs are made before seeking new buyers. Inability to fix the home increases the chance of the house to sit on the market for longer periods than expected. Consequently, the value of your home can significantly drop.
Consider the market
Timing for both selling and buying a home should be right. Getting the right timing will depend on the condition of the local housing market. In the buyers’ market, the process might be longer to sell the home. Therefore, there is need to wait on making offers on the next place until there is a contract signed by a potential buyer. Another tip is you have the upper hand to put in place a contingency that will not validate or legally bind the deal if the sale of your current home fails. This helps in giving you peace of mind.
In the sellers’ market, make sure that your home is staged and ready for market. Also, ensure that finances are in order to help in making an offer on a home quickly. When conditions are inclined towards the seller, there will be less flexibility to factor in contingencies or bump out closing date, especially if the seller needs to move faster. Nonetheless, if the current home is priced right and staged well, the sale should be faster. It also helps in providing room to be more selective on what offers to make and at the same time what to consider and limit with less contingencies.
Learn the market
Selling your current home and purchasing a new home is a major decision. It is important to understand why you want to sell your current home and buy your next home. If you are not clear on why you want to purchase a new home, you could be easily regret the decision. Therefore, understand the new qualities you want and go for open houses to see what the market offers. Start with the elimination process, where you will state what your next home must have and the deal breakers.
Negotiate both the timeline and the finances
Ensure that you get the best possible prices on the sale of your home as well as the closing process when negotiating for the two deals. The goal is for the buyer of the current home and the seller of your next home to have an agreement to adjacent closings or any important contingency. Many buyers only negotiate the finances and forget the timeline, which is equally important.
List your current home when you are ready
List your property towards the higher end of its value range when you’re actively in the market. This helps you to buy time while you look for your next home. The process can be beneficial to you as there are chances of getting more money from the sale of your current home.
Have plan B
Even if you carefully plan to purchase and sell your homes at the same time, the transaction may not be as scheduled. One of them might fail completely. Closings should be rescheduled as per the minimal financial pain if the contract have contingencies.
If not, a plan B is essential. Here are the options;
• Rent for a short period if the sale has been finalized and you have not found your next home.
• Ask buyers to agree to rent-back as this will help you to remain in your current home after closing. The period of your stay should be short and you should pay rent to the new owners.
• Cover your finances for buying a home with savings, home equity or a bridge loan over short-term.
• Rent your current home and use the money to offset the expense of owning two homes until it can be sold.
Pack the things that you do not require as often. Packing should be made in boxes and should be labelled. Get rid of all the things that you may not also require when moving to the next home. This will help to make the home show better and at the same time it will make the packing process easier. There are instances when renting a storage unit may be necessary if the buying process takes longer.
Check if your furniture can fit through doors
The size of entrances and turning room can be a problem after buying your next home. Therefore, you should ensure that the furniture will be able to fit in the new house to avoid the inconvenience.
Selling your house and finding a new place at the same time can be challenging. Hiring experienced professionals makes the transition smooth and ensures that there is effective and consistent communication with all those involved. Keep tabs on the finances and credit score before and during the process. This helps one to act quickly when you find your next home.