Synchronized Buying
and Selling
One
of the most stressful aspects of a Real Estate transaction can be trying to
close on one home while you are purchasing another; especially if you are using
proceeds from the sale to do so.
Although there are many more hurdles to be cleared when trying to
coordinate this, it can be done
successfully if you plan accordingly.
Take these three factors into consideration and you will be sure to make
the transition smooth and stress free.
Don’t
search for a new house until your home is under contract!!
Doing
so will drive you crazy. Until
your home is under contract you really don’t know where you stand as a
buyer. Feel you won’t have enough
time? Let buyers know right off
the bat that you will need an extended closing 60-90 days is generally
sufficient. Buyer locked in a rate
and has to close in a specific time frame? Offer to rent the house back for a monthly fee or a reduction
in sales price until you can close on your next property. There are ways to work things out for
both buyer and seller, but until you are under contract, don’t even window
shop. Things change daily in the
market; you don’t want to fall in love with that cute doggy in the window if
you aren't ready to take him home yet.
Get
your purchase mortgage in line
The
biggest mistake you can make when purchasing your next home is to assume you
will be approved for a mortgage prior to selling your current property. A closed sale isn’t much to
celebrate when you don’t have a place to throw the after-party. Be sure to talk with your mortgage
broker about your plans as well as your financial ability to do so. Times, rates and requirements can
change rapidly and you need to be sure that your next purchase is fiscally
possible. Crossing these “t's” is
imperative prior to even listing your current home. You cannot negotiate the sale of your property properly
without knowing what your next step will be.
Price
Correctly!
If
planning a sell/purchase transition your best bet is to price correctly at fair
market value. This will increase
your chances of not only obtaining a quick sale, but also in procuring a
cooperative buyer. A buyer who
doesn’t have to go through a lengthy and stressful negotiation process is more
likely to grant you more time in the home, or approve an extended closing. This is NOT the time to let greed
get in the way – be honest with yourself and be sure to work with an agent who
truly understands fair market value for your particular home.
Keeping
these points in mind will help you transition from your current home to the
next with less stress. Not
keeping these factors in mind can hurt both your sale and your purchase. I’ve seen people rush to buy for fear
of not having a place to call home as well as sellers whom have sold for less
just so they don’t lose a home they’ve fallen in love with. A home sale and purchase can be a
very emotional experience, it’s always a good idea to mentally prepare and
stick to your game plan. Remember,
prepared people succeed!
