If you’re thinking about placing your home on the market, you likely have many questions about what this process entails. Selling a home can be a lengthy and time-consuming process. However, you also need to find time to look for a new home to buy. In this situation, there are two options at your disposal. You can either search for a new home before your current one has been sold or wait to buy a new home until after your home has been sold. The following offers some tips and suggestions on how to sell your existing home and buy a new one at the same time.
Understand the Broader Market
First, it’s important that you understand the local real estate market if you want to navigate the buying and selling processes at the same time. The real estate market can either be classified as a buyer’s market or a seller’s market. If there are more homes on the market than buyers, the market is a buyer’s market. On the other hand, it’s possible for the real estate market to be a seller’s market if the number of potential buyers is higher than the amount of home inventory at a given time.
At the moment, most real estate markets throughout the U.S. are more advantageous for the seller. In 2020, the Federal Reserve substantially reduced nationwide interest rates, allowing buyers to obtain mortgages at relatively low-interest rates. As such, it’s more affordable than ever to purchase a home. When the market is a seller’s market, you’ll notice that there’s an ample amount of competition among other buyers for the same properties.
If you make an offer on a home, the seller might have already received three additional offers in recent days. When you find your dream home, you might want to make an offer quickly. Otherwise, there’s a good chance that another buyer will swoop in and get your preferred home before you can react. Your real estate agent can help you determine if you should buy or sell first.
Identify Your Current Financial Situation
Before you even consider making an offer on a new home, it’s important that you know what you can realistically afford. Your mortgage banker can help you understand how much you can afford at the moment. In the event that you decide to sell your home before buying a new one, you should make arrangements for a short-term living situation.
You may be able to stay with friends or family for a short period of time while searching for a new home. Making these arrangements early on in the process will also allow you to set up storage for your possessions with time to spare. You could negotiate with the buyer to remain in your home for 30-60 days after the purchase has been made, which gives you more time to find somewhere else to live.
When you want to buy a home first, you will need to have enough money to cover two mortgages for a short period of time. You could include a sale contingency with your offer, which means that your offer would only go through if your home is sold. You can also obtain a bridge loan, which is designed to cover the expenses associated with buying a new home until your current home is sold.
Develop a Comprehensive Plan
Whether you decide to sell first or buy first, you should develop a comprehensive plan for how this situation will be handled in the days and weeks ahead. You may need to temporarily rent your apartment or store your belongings for a couple of months. If you want to avoid any unforeseen problems when buying a new home or selling your current one, having a plan is essential.
No matter what you decide to do, you should seek input from your real estate agent. They will be able to guide you through every step of the home buying or selling process. Whether you are looking to sell your home, buy a new one, or both, contact Stevens Realty today to get started!
We are Keith and Janna Stevens, and we’ve been in the realtor game for years now. We’ve learned a lot along the way and want to share that experience with you. Enjoy our blog, and when you’re ready to buy or sell your home, be sure to reach out to us!