· Do remember that you're at the mercy of the real estate market from both sides of the transaction instead of just one.
· It takes a little more juggling, and often a little more paperwork and patience closing two transactions.
· Your Realtor should be experienced in offer negotiation and scheduling back to back closings.
The biggest risk of selling prior to purchasing is that you could sell your home without having anything lined up to purchase and move into. If this happens, you may have to rent while you look for a new home or keep some belongings in storage.
The biggest pro to buying a home before you sell your old one, is that you will have plenty of time to move. This gives you more time to get your home ready to sell and ease into the process.
The biggest risk is, of course, if your home doesn't sell for a while, you could possibly be paying two mortgages at once. If your home is already paid off, that's not a big deal, but most of us would struggle with two mortgage payments. Plus, it's harder to qualify for a new mortgage if you have two mortgage payments. To buy a house before you sell, your income will have to support both mortgage payments at the same time.
If selling, you might negotiate with your house's buyer instead. Ask to add a contingency to the contract that makes the closing date line up with the closing date on a new home. Another option is a rent-back arrangement. With a rent-back, the buyer agrees to "rent" out your current home for a short time after you sell it. You negotiate a rental amount you will pay the buyer in exchange for staying in the home you just sold to them for a predetermined amount of time.
Do keep in mind that not all lenders allow a rent back or only allow it for a short period of time. But it's more convenient than selling your home, moving into a rental property, and then moving again into your new home. Whatever your unique specifics may be, if you need to buy and sell or sell and buy, Jacki and Kristi have the experience to help make the process a pleasant one for you. If you have questions about your needs – talk to us!
2. Find Out What you Owe on Your Current Property
3. Have Your Realtor Inform You How Much Your Property is Worth and What You Can Expect to Net at Closing
4. Contact a Lender, Get Prequalified For Your Next Purchase and Decide How Much You Want to Spend on Your Next Home
5. Go Look at Properties Within Your Price Range for Possible Purchase and Properties that Compete Against Your Home For Sale
6. List Your Home
7. Go House Shopping and Place an Offer on a Home You Want to Buy
8. Negotiate Offers and Go Under Contract – Both Buying and Selling Side
9. Go Through Inspections, appraisals and loan contingencies
10. Close on Both Homes the Same Day