Selling & Buying at the same time
Buying & Selling at the same time?
Running out of space and dreaming of your forever home? Maybe your home is TOO big? Moving into a bigger better home but need to sell first? OR are you wandering around a home that's simply too big and too expensive to keep? You aren't alone! This year many will make the move from their current home to their forever home.
When you are ready I'll be here to guide you as I have many people over the years. I manage this type of sale all the time - literally I'm working on contingent sales like this every day. Helping the Lyons family go from the little house on Lincoln to the big house on Abbott, helping the Jones family go from the beautiful library area cape to the the mansion on the hill. Finding strategies for the Worthley's to sell on Chickering to get out country on Salem Street or the Peters on Boscawan to find their forever home or the Schumachers, Chase's.... It all starts with a strong strategy.
When at all possible, Sell before you Buy. This is the easiest way to know exactly when your closing date is taking place, how much you will have for your down payment. If that’s not an option for you then be sure to read all of my tips below.
Do you prefer to sell before you buy?
Contingencies to consider
- 1. A Suitable Housing Contingency - allows you to market your home, select a buyer and then gives you a period of time to find another or you are able to terminate the sale. Be warned - this does limit the amount of buyers who will consider you seriously selling but for those who aren't in a rush you could be their best choice.
- 2. A Financing Contingency - One of my favorite local Attorney Ej Schneider of Dalton and Finegold in Andover opened my eyes to the home sale/home purchase financing contingency. This clause indicates if you don't obtain financing on your purchase you no longer need to sell. I love it and think it's a great layer of added protection.
- 3. A Home Sale Contingency - This allows you to submit an offer on another house however if your house doesn't close then you are not bound to buying the new house. This is a tricky one for many to understand. Over the last decade I have had great success with this - contact me with questions as there are dates, deadlines and strategies that make this more attractive.
Very often my clients will have both a Suitable Housing contingency and a Home Sale Contingency so they are protected on both transactions right up until the closing.
BONUS TIP - When at all possible, list your house BEFORE submitting your offer, even if it’s same day, BEFORE is better than after offer submission. It shows sincerity. To protect your self utilize the suitable housing & home sale contingency.
Would you rather buy first then sell?
Talk to your favorite trusted lender and ask them to check your qualification status to see whether you can Buy and then Sell. If you need a lender you will love? Ask me for suggestions.
Should you rent it? If you own existing property and can buy your next home without selling, consider whether your home makes sense to rent profitably. A local agent can share what the norm is for rental pricing, terms and management costs.
Have Savings? The easiest route is to use an existing savings account for your down payment. Often people borrow against a 401K or retirement account, we even see people borrow from parents and repay them at closing. This allows you to sell your existing home after you have moved out minimizing the stress, strain and anxiety. You can take time to clean, freshen up paint, complete any work that would enhance the value and sell for a stronger price. Also, virtual staging can dramatically modernize a home and attract more buyers. When I have a vacant listing I frequently utilize this type of preparation for my clients
Have Equity? A home equity line of credit may allow you to access money for your down payment, then pay it off when your home sells assuming you are qualified by a lender to do so. Need a great lender? I will make some suggestions for you.