Selling your current home and buying a new one at the same time can be a difficult task. The truth is that it’s almost impossible to coordinate the move and close the deal on both properties on the same day. However, there are certain practical strategies you can use to make the transition much easier.
To help you buy a new property and sell your old home at the same time, we’ve come up with 5 strategies that might come in handy.
1. Find a Good Real Estate Agent
The first thing you should do is hire an experienced real estate agent. Besides representing you as both a buyer and a seller, this person can also analyze the market, perform both an offline and online research to check the prices and listings of properties in your vicinity, and stay on top of requirements and deadlines. When you find a house you wish to buy, a reliable estate agent is there to write an offer.
Keep in mind that you need someone with a deep knowledge about the local market conditions, so it’s important to interview several estate agents before hiring and not just go for the first agent that comes your way. The easiest way to find a good real estate agent is by talking to someone who has sold or bought a house recently.
2. Know Your Finances
When buying and selling your house at the same time, it is important to know your finances inside out. You need to see what can you afford to buy and figure out how much money your old house is worth and determine its resale value. In case you need to do some repairs in your old house before selling it, figure out how much cash these repairs will cost you. There are many design tips online to sell your house faster. If you want to do some renovations before selling, follow some of the latest design trends on the market. It is also important to reach out both to your mortgage banker and financial planner to find out what’s feasible based on the amount of liquid cash you own.
3. Take Time to Analyze the Markets
This step is very important. It’s really difficult to develop a good game plan for selling and buying a home simultaneously before analyzing the markets you hope to buy and sell into. Do some independent search on your own and get your real estate agent to help. In case you are selling a house in a hot market, expect to sell your home fast, but also keep in mind that there will be many potential buyers contacting you and asking about the price. Deciding whether to first sell your home or buy a new one also depends on the market. Therefore, it is important to find out whether the market favors a buyer or a seller.
4. Start Packing
Start packing your stuff and get rid of the items you won’t need for your new home. If you pack your belongings before moving into your new home beforehand, you will save valuable time. Keep in mind that there is a chance that you’ll have to rent a storage unit for your stuff, especially if you sell your home before purchasing a new one.
5.Get a Bridge Loan if Necessary
In case the market favors buyers and you decide to buy a new home first, you’ll probably need a loan for the down payment on your new house. You can ask your friends and family first, but if that doesn’t work out, another option is to ask your lender for a bridge loan. These are temporary loans that cover the gap between your new mortgage and the sale price of your new home. Once you sell your old home, you can repay this loan.
Selling and buying a home simultaneously doesn’t have to be a stressful process. By following these strategies, we are sure that you will sell your new home and buy a new one in no time.
Sienna Walker is an educator, a passionate blogger and a part of the team supporting Spacer, an online resource for renting space. Sienna can often be found online, sharing her thoughts with online communities, or participating in financial discussions. Feel free to reach out to her on @SiennaWalkerS.