Synchronized Buying and Selling

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!