If you’re selling your home and buying a new one due to a major work relocation, need to migrate to a region with decent schools, or your existing home isn’t large enough for your growing family, transitioning is always strenuous. Now add attempting to sell your existing home at the same time to that and the stress level rises exponentially.
Not to worry, if you can follow the instructions that would be provided in this article, you can make the entire process easier, less stressful, and almost painless. However, before we get started with the processes, there are a few points to bear in mind.
Deciding Whether To Sell Or Buy First
When contemplating either acquiring or selling the property first, there are various philosophies, and each individual will have their strategy.
Some argue that you should sell your current property first so you don’t end up with two loans, while others advise you to hold off on selling until you’re no longer in the market for a home.
Purchasing Before Selling
An often clear advantage of purchasing a home before buying your existing one is that you will know you have a place to live when you dispose of your present home.
There’s nothing more aggravating than trying to find a relatively brief rental with family and belongings in tow. If you’re a new tenant, many places won’t let you rent on a month-to-month basis. As a result, even if you only require a month’s rent, you may have to pay for many months.
In the same vein, if you don’t sell your current home before buying a new one, you can end up with two loan repayments at the same time. Homeowners must either have a strategy to pay down a second mortgage or decide to sell their home quickly. This could be disastrous, especially if selling your property turns out to be more difficult than you anticipated.
Selling Before Purchasing
You won’t have to spend on two mortgages if you sell your property before purchasing a new one and you won’t be hurried into a housing commitment as a result of this. If you have a place to stay after the finalization, you may take your moment and ensure that your next property purchase is the perfect one.
Furthermore, when you sell a property before buying another, you’re taking a chance on finding something that suits your needs and budget. Some people have learned that staying put and remodeling is a better option than selling their property.
How To Sell and Buy A Home
The measures to take are the same whether you intend to sell your current home or buy a new one first.
1. Evaluate the Present and Potential Home Markets
One would transition from a seller’s market to a buyer’s market in an ideal scenario, provided the circumstance allows you to get the best possible sale value for the property and the best possible purchase price for your new home.
The real estate market is influenced by several things like hyperlocal housing markets existing in distinct cities, a seller’s market popping up in a commuter town with strong schools, while a buyer’s market may emerge in a region with an increase in violent crime.
2. Determine If This Is the Right time
Some times of the year are preferable to most for purchasers like families who don’t want to relocate during the academic year, so they choose the late summer months.
Typically winter is a dull season, particularly in locations where there is a lot of snow. So you should consult with your real estate broker to determine if there are any additional variables to consider. And even if now isn’t the best time to sell, you could still prepare your home for sale and the earlier you start, the less difficult it will be.
3. Put Your House In Order Before Putting It On The Market
Anyone who has lived in their present home for a long time is aware of the number of belongings they have. Take this opportunity to organize and get rid of everything you don’t want to take with you, even if you are far from marketing your home.
The preparation of your home is perhaps the most important phase, and it should not be overlooked. Throw whatever is not needed away or sell those unwanted items at a garage sale to make some cash.
Also, make a thorough inspection of the house for any major flaws. Redecorate a room that has been done in a brilliant hue with a neutral color.
4. Evaluate Your Finances
Make use of this time to assess your financial situation and if need be consider getting preapproved for a mortgage with a mortgage provider so you can act swiftly after you find the ideal house for you.
5. Enlist The Expertise Of A Real Estate Agent
You will have someone to address your queries and assist you to sort out issues if your property is listed with a qualified real estate agent. First and foremost, they can assist you with showcasing your house and determining what adjustments should be made.
They can connect you with the perfect cinematographer and staging professional to make your home appear its best. After which they will be in charge of locating purchasers, advertising the open house, and showing the house while you are away. They may also be able to connect you with other agents to advertise your house.
A real estate agent who is familiar with the area and industry can value the property competitively so that it does not go unsold for weeks and you would be able to save a lot of money if you use this method.
6. Source For Your Deposit
The majority of homeowners are unable to purchase a property without first disposing of their current home. Therefore, you may find it hard to come up with the deposit if you buy a home before selling your present one, so before you begin the funding phase, be sure you have a good understanding of your financial possibilities.
7. Commence The Search For Your Ideal Home
If you’re relocating within the same city, you should use the same realtor to sell and buy your new home, but if you are relocating, you will need to hire another real estate agent. A realtor is particularly useful in this situation because they are more familiar with the area.
In this instance, a qualified agent should be able to comprehend your preferences and be able to assist you in finding lodging when you need to stay somewhere else between selling your current home and finalizing your prospective one.
Note that when you are purchasing property in a seller’s market, you could find it difficult to see the houses in person before making an offer. So while purchasing a house without first seeing it is not practical, a good agent can assist you in navigating the process.
Finally, obtain a pre-approval before you commence house hunting if you want to make the process of acquiring your second property while disposing of your first go more smoothly.