Buying And Selling A Home At The Same Time
Whether you are considering an upgrade, moving to another area or neighborhood, or downsizing for retirement; when you own your current home you know that buying and selling a home at the same time could get a bit tricky. Do you buy first and then sell, or sell first then buy? Buying and selling a home at the same time is one of the biggest concerns that home owner’s have.
In a perfect world, you would take your time and find the perfect home and move. Then, in the most timely manner, your agent would bring you a full offer on your previous home and you would quickly close without having to even make an extra mortgage payment on that house. Ultimately, most of us know that often times the stars do not align and unless certain preparations are made, this situation could possibly leave you paying two mortgage payment which may eat up the equity that you had in your home.
So where do you start? First contact a knowledgeable Realtor, who knows the market and discuss your concerns about buying and selling a home at the same time. The most important information you need to know is what the current market is. Is it a buyer’s market or seller’s market? How much is your home worth in today’s market and what is the estimated amount of time it will take to sell? How much will you net after all of the closing costs are paid?
Once you know the answers to these vital questions, you will be better able to strategize a plan to move forward with buying and selling a home at the same time.
You will need to take a hard look at your financials. Can you afford to make two house payments and if so for how long? Will the bank loan you the funds for the second house? If your home does not sell in a timely manner, will this put you and your family in a financial bind?
If you are financially secure and not concerned with the possibility of making two payments, there are some advantages to buying first. It allows you, as a buyer, to be less rushed when choosing your next home and moving to be done at a relaxed pace. Buying first allows your previous home to be shown vacant, allowing buyers to more easily picture the home as theirs with their furniture in it. In a Military Market, like Lawton-Ft. Sill, a vacant home may be a huge benefit to a buy who needs a quick move-in date. Often times, a military buyer is given 10 days in a hotel to find a home and a Realtor can negotiate early occupancy after inspections and the appraisal is complete.
Many buyers find their next home before considering selling, if that is the case and you don’t want to risk loosing out on the perfect new home that you have found; there are other options to help secure your dream home. You could make a contingency offer based on the sell of your home. (Then hurry and put your home on the market and priced to sell!) You could also use a bridge loan. This is a short term loan that is repaid once your current home sells. Another option would be to rent your existing home, but I would suggest talking with an accountant to be sure that you are informed of any tax liabilities for a future sale.
Just saying the words, “buying and selling a home at the same time”, can be enough to stress you out and if you are like most home owners, selling first will likely put your mind and your pocket book at ease. Although this is the less risky option, there can be some complications and inconveniences when selling first. What if there is a gap between the closings on your existing and new home? What if you don’t find that perfect new home right away or decide to build a home instead? Where will you live? You may have to rent a home or apartment and place some of your belongings in storage. Short term rentals can be difficult to find in some markets. Having pets can even further complicate the quest for temporary housing. Some buyers have temporarily moved in with family members or stayed in a hotel, depending on the length of time needed. Moving twice can be a headache, plus the additional costs of a storage unit or deposits on temporary housing.
Buying and selling a home at the same time can be done and it can go smoothly, but there is a lot to be considered. I would never recommend that anyone buy first before selling their current home. I always err on the side of caution. I am here to provide you the information to make an informed decision.. Only you know where you are financially and after looking at all of the options, what route will ultimately align with your long term goals.
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Buying And Selling A Home At The Same Time
The Ins and Outs of a Bridge Loan https://www.thebalance.com/what-are-bridge-loans-1798410
Learn More About Contingencies https://www.thebalance.com/contingent-contracts-selling-buyers-home-1798840