Selling And Buying A House At The Same Time
Moving too fast can have devastating results, as Stuart Jones discovered on the way to buying his first home in Philadelphia (Jones asked CNET not to use his real name). Jones had been eyeing a three-bedroom airlite row house built in 1930 -- a fixer-upper with a facade made of local stone. Eager to sign, Jones got a recommendation for a lender from an acquaintance and signed a contract without asking any questions.
selling and buying a house at the same time
The path forward to a new home should be a little more clear now. Start figuring out how to budget for your home ahead of time so you're not tripped up by logistics when you find the right house. And remember, homeownership is not necessarily for everyone -- there are pros and cons to both owning and renting. Make sure you want to be a homeowner before you make this commitment.
Jody Ellis is a freelance writer with more than 15 years of experience in the writing industry. Her work includes copywriting and content marketing for real estate professionals, stories covering real estate trends and housing markets, and varied articles on decor and design. In addition to buying and selling several homes herself, she's also owned and managed rental properties, and previously worked in mortgage lending.
Even though you might have some control when it comes to selling your current house, you still need to get a buyer in the first place. When you start thinking about listing your home, make sure these key bases are covered to help make your sale go quickly and smoothly:
First, work with an experienced real estate agent who can help you understand the challenges and benefits of buying and selling a home in your current market. A good place to start with your agent is having a discussion on current real estate trends so you have a grasp on how much your home will sell for and how much you can expect to pay for a new home.
In a perfect world, your next house would be ready and waiting as soon as you turn over the keys to your previous one. But of course, the world is not perfect, and the timing between selling one home and buying the next does not always line up the way you want it to. Take heart, though, because a little planning and working with a savvy real estate agent can help make both transactions run more smoothly.
"In this situation, there are a million little things that can just be minor delays and if you're counting on settlement happening, not just in that day but on that morning, that can really, really derail things," warns Philadelphia-based buyer-agent Scott Hicks. "So now if the sale of your house has to be delayed 24 hours, you need to delay the house you're buying by 24 hours, because you need that money to buy. There are ways to resolve these issues but it adds a lot of stress to the situation."
Trust me, after selling real estate for the past thirty-five years, it happens a lot! Since most people do not have the financial luxury of purchasing another home first, selling and buying often coincide.
The home buying and selling process can be time-consuming, and there are few guarantees. Unless you have a highly desirable home and are willing to part with it for only a fraction of what it is worth, you will probably need some time to sell it.
The fact that you will need to spend time selling your home means that buying another home simultaneously is typically not a workable proposition unless you are willing to pay for both houses at the same time.
A bridge mortgage is a short-term loan used to bridge the gap between buying your next home and selling your old house. Some folks want to buy a house before they sell. You may not have enough money to purchase the next home in that circumstance. A bridge loan will be used to help buy your new place.
Today, most lending institutions will look to see if you can afford to carry two mortgages simultaneously. You will need to qualify to pay mortgage payments on two properties. Getting two mortgages is almost always the best way to buy and sell a house at the same time.
On most occasions, when buying and selling a home at the same time, the closing for both the buy and sell will happen on the same day. The home you are selling will close in the morning and the home you are buying in the afternoon.
No doubt selling and buying houses in the same time frame creates a lot of stress. There is constant worry if everything is going to work out as planned. It almost always does, having been through the simultaneous buy and sell process so often in my career.
Having a sound game plan and working with a top real estate professional can help you achieve your goals. If you are in my area, please reach out as I love working with those who are buying and selling a home.
Use these additional home selling articles to avoid getting stuck owning two homes. Buying and selling a house simultaneously can be done as long as you are prepared and have a great real estate agent in your corner.
About the author: The above Real Estate information on buying and selling a home at the same time was provided by Bill Gassett, a Nationally recognized leader in his field. Bill can be reached via email at email@example.com or by phone at 508-625-0191. Bill has helped people move in and out of many Metrowest towns for 35+ Years.
When it is time to sell a dwelling, many homeowners ask the same question. Is selling and buying a home at the same time possible? The short answer is yes, but it can get complicated. Keeping three critical points in mind will help you navigate the process:
Be sure you give yourself time to review the pros and cons involved in buying and selling your home. To avoid potentially digging a financial hole, analyze your capabilities. Do you have enough cash for a down payment? Could your budget handle two mortgages for a short time? If the answers are yes, you may be good to go!
Are you ready to upsize or downsize your home but not quite sure how to make it happen? Buying and selling a home at the same time in California may seem a little tricky given the market, but it can be done. The team at New Way Mortgage is here to help!
The California housing market is competitive and still experiencing some inventory challenges. That means buying a house before selling your existing house, or doing both at the same time, requires some strategy. So what are your options to secure your dream home while selling your current home?
We can determine how much you can afford to spend on your new home, how much of your sales proceeds from your current home you want to use as a down payment on your new home and then determine what program, terms and interest rate you will qualify for. You can sell your current home and buy a new home at the same time.
If you will be selling your current home before purchasing a new home or selling and buying on the same day, a conventional or non-conventional mortgage is all that is needed on the new home. If you want to buy a new home prior to selling your current home and you need the equity in your current home to use as a down payment you will have to be able to afford two or more mortgages to tap the equity in your current home.
Before you start making plans to buy and sell a house at the same time you need to get a clear idea of how much your current home is worth. So start online with our free instant valuation tool. Then get at least three local estate agents to give you their valuations. This is a chance for them to apply their local knowledge and take account of any unique features or home improvements which add value to the property so you can get the most accurate figure. Some agents are renowned for giving an overly high valuation in order to gain your business. However by getting three agents round you are hopefully reducing the risk of setting off with an asking price you have to reduce a few weeks down the line.
The timeline of buying a new home when you have a current one to sell can be daunting to balance. Selling your old home too soon can result in having to move out before your new home is ready, and selling too late can mean taking possession of your new home while still paying the mortgage on your old one.
Working with a Realtor gives you access to current information on what potential buyers in your area are looking for, as well as years of expertise navigating through the logistical, legal, and financial jungles that selling a house requires.
However, these fees are cheaper when it comes to buying a new house and will either be charged as a fixes rate or as a percentage of the sale price. Again, other selling methods such as Good Move can often cover these costs for you.
We understand that this is nerve-racking for homeowners, but it is impossible to eliminate every risk when conducting a real estate transaction. If you cannot buy before you sell, then you simply should list the home first. Yes, there is the chance that you will not find what you want, but that is the worst-case scenario. In our experience, however, we see this happen less than 10 percent of the time. To learn more about selling your home, and to listen to Anthony discuss various scenarios and their solutions, visit our Want to be Sellers video resource page.
At the same time, you want to be prepared for your home to take longer to sell than you might think. The key is understanding the market conditions for your neighborhood, which an experienced real estate professional can help you with.
In addition to repairs and maintenance, focus on the aesthetics of the home. Get rid of clutter, add a fresh layer of paint, install new carpeting, clean up your landscaping, etc. Real estate experts say that curb appeal of the home is one of the most important features when it comes to selling a house, as we wrote about in our post on this topic. So, be sure the exterior of your home is show-place ready before you plan to put it on the market. 041b061a72