If you’ve got a plan to buy and sell a home at the same time, congratulations first of all. Few people have the determination to accomplish such a remarkable task. You may be wondering exactly how to manage both a home sale and purchase simultaneously. It can be easier than you might expect, as long as you have the expert knowledge to get it done.
A local real estate team can be an invaluable resource to have by your side as you negotiate all the ins and outs and reach a successful close to your real estate journey. Below, we’ll help you through the process step by step. Let’s get started!
Should you buy or sell first?
The first task to complete before you set off buying and selling property is to determine in which order
you should pursue these two objectives. There are clear pros and cons to both approaches, but it’s vital that you and your real estate agent arrive at the right decision early on in the process if you’re going to be successful and avoid costly delays.
First, when should you buy a house first
? The biggest advantage to doing this is that you’ll have a secure idea of where you’re going to live before you sell your current residence. You won’t have to shell out extra funds on short-term housing and you’ll have a better chance of staying under budget as you wait for your home to sell. Plus, you’ll be able to save on moving costs since you won’t have to move into a month-by-month living situation then move again into your permanent home. The downside to buying before selling is that you’ll likely have to pay two mortgages before your current home sale is finalized. You should make sure you have a plan to cover these costs and a strategy to speed up your sale if necessary.Selling your home first
has its own set of benefits and drawbacks. On the one hand, you won’t have to pay two mortgages if you can successfully close on a sale first. Doing this, you won’t have so much pressure to find a new home and you can take your time to locate the home of your dreams. On the other hand, you’ll have to rely on short-term housing if you can’t find a new home that fits your liking. These costs can add up if you and your realtor don’t work together to narrow down your choices on the market.
Steps to managing a home sale and purchase
Now that we’ve gone over the pros and cons to buying and selling a home in the right order for you and your family, let’s move on to the procedure to accomplish it. Below, we’ll run through every step of the process.
Check the local market
Work with your realtor to locate the housing markets that will fetch the lowest purchase price for your new home while giving you an advantage as a seller in your current neighborhood. It’s not always possible to track your move to a new area in such a way, but you should try to relocate to a part of the country that’s in a buyer’s market
where the inventory of homes for sale is high and you’ll be more likely to close on a home purchase below the market estimate.
Plan your move at the right time of year
The real estate market is a fluid one and each city and neighborhood has its own highs and lows where you’ll have more purchasing power as a buyer or seller. In general, the winter months are the least ideal time to sell since most people are busy with holiday plans and family. At the same time, you can capitalize on the lack of buyer interest by joining the market as a buyer
during these off seasons. The climate of your current neighborhood and the one you’re planning to move to will also influence the market. If you’re moving from a cold winter area to a part of the country that has more consistent temperatures throughout the year, then buyer demand could stay high through the fall and winter.
Pay attention to your home staging
The world of luxury real estate is heavily populated by buyers and sellers who put a high value on properties that have been expertly decorated and staged. You can make your home sale much more attractive (and ensure that the sale closes quickly) by doing your part to stage and photograph the home well
. Declutter and de-personalize the living spaces so it’s easier for open house guests to visualize what it would be like to live in the home. Meet with your agent to discuss whether or not you should make minor repairs or upgrades to your appliances. Look at comparable homes in your area to see what kind of listing photos and descriptions these homeowners are publishing.
Research your options for a down payment
Unless you’re in the financial position to buy a home without selling your current house first, you’ll have to come up with a realistic way to fund the down payment on your new home. There are several options you can pursue. First, meet with your lender to see if you can open a home equity line of credit (HELOC)
. This method allows you to use the value of your current home as collateral for your new loan. Once the old house sells, you can begin to repay the HELOC over time. A bridge loan
might also be a good idea. These funds are a type of personal loan that will help cover the cost of a down payment until your home sells.
Get in touch with a local real estate agent
We hope that this guide to buying and selling a home at the same time will help you better navigate the market and reach a successful close at your own pace. If you have any questions or comments to share, or you’d like to learn more about New Canaan
homes for sale, reach out today! Contact Carissa McMahon
for more information.*Header photo courtesy of Shutterstock