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4 Smart Tips on How to Sell your current Home and buy a new One Concurrently

Posted by Tessy on September 3, 2018
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To sell your current home and buy a new home concurrently can be very challenging and tasking than doing just one transaction, but with the good and right planning it can be most rewarding.  Market forces are usually uncontrollable and sometime their swings are unpredictable, but there are some things you can do to prepare yourself and possible achieve closing a buying and selling deal the same day. Understanding the steps and being proactive can make the transition much easier.

Consider this key information on how to buy and sell a house at the same time.

1. Know Your Market.

It’s important to understand the housing market in your area before you put your home on the market or start seriously searching for a new one. Is the market favoring buyers or sellers, and how will this affect your selling and purchasing power?

You won’t be able to make the best plan of action unless you understand who’s holding the power in the market.

As part of understanding your market, you’ll want to hire an appraiser to help you give a fair price on your old home. When purchasing and selling at the same time, it’s best to get your house sold fast. The faster it sells, the less time you spend paying two mortgages. So, make sure you don’t overprice your old home.

 

2. Organize Your Time Very Well

Once you have a contract on your existing home and have found another you’d like to buy, good communication between all parties is essential to timing the transactions, allowing for a seamless move from one to another. The timing of selling a home and buying another one is delicate and requires solid planning before you acts. You want to make the sales and buying process, and the transfer between the two, as painless as possible. Timing the sale and purchase is stressful because you do not have control over everything that is happening. You hope the sale will go through, but it might not. You hope the seller of your next home will accept your offer and close the deal, but they may not.

Some people who buy and sell at the same time find themselves in a situation where their old home is sold but they have not located their next home yet. This is where the stress rises. There may be a struggle to find a home that really fits.

3. Make a Decision

Selling First

If you decide to sell first, the advantage is that you will know exactly how much money will be available for your purchase and when.

The disadvantage is that you may have to move into rented accommodation if you can’t find a suitable property to buy immediately, or what you buy is not ready for immediate occupation

 Buying First

The advantage of buying first is that you may be able to move straight from your current home to your new property with minimal disruption to your family. However, the disadvantages are that you won’t know exactly how much you’ll get for your home, and whether you’ll have to dip into your reserves or arrange bridging finance to cover the purchase. We have heard many buyers with a home to sell ask: “But what happens if I can’t sell it?” With respect, there is no such thing as a property that will not sell.  There is only a seller who is not prepared to accept what the market will pay.  Don’t imagine you can sell high and buy low.

4. Use the Services of a Good Real Estate Agent

The fourth step is finding a qualified and experienced real estate agent. This person will represent you as both a seller and buyer, which means that he or she will work with two other agents and negotiate contracts. When dealing with two properties, it’s important that everyone stays on top of deadlines and requirements. Your agent’s job is to ensure that this happens. When you find the right house, part of your agent’s job is to write up an offer. Talk to your agent ahead of time about how you will handle this process. If you are putting in an offer on a house and your house is not sold, you have two options:

Put in a contingency clause stating that the agreement with your new home seller only takes effect as soon as your own house is sold. Also, prepare your mind to secure two mortgages peradventure your home doesn’t sell immediately.

You can also wait to put in an offer until after you sell your home. In such situation you would need to make arrangement for a temporary accommodation until you are able to buy a new property.

 

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