Smart Partners Realty
Advice for Selling One Home, then Buying Another
In a perfect world, you sell your old home and buy the new one on the same day. Given that things rarely turn out perfectly,
here are some things to keep in mind as you negotiate the sale of one house with the purchase of another.
Time it right
March - September are typically the best time of the year for selling and buying homes. That being said, the best time to move is when you are ready.
Selling your home before buying a new one minimizes financial hazards. Even if you have to find temporary housing,
it’s generally cheaper than two mortgages.
Get an appraisal or CMA (Comparative Market Analysis) before you list your home. That way you’ll have a good idea how the sale of your home will affect your purchasing power on the new one. This will help keep you from over extending your mortgage abilities.
Get pre-approved (or pre-qualified w/ a credit check) on a loan for the new home.
Until most of your contingencies have been met, wait to put an offer on a new house. You don’t want to be left holding
the bag, or in this case, the house.
If you’re ready to accept an offer on your home, but haven’t found the right new home, negotiate a long escrow or a
sale/lease back. This will give you more time to look for the new home. Otherwise, look for temporary housing.
You’re only thinking of buying, and suddenly the right home shows up. Now you have
to sell your old home quickly. Here are some tips on making things work in your favor:
Negotiating a long escrow on this side of the sale works, too. Some people may suggest you make the purchase contingent on your house selling. Although Contingencies will rarely work in today’s Triangle market. Smart Partners Realty will help you determine what strategy will work best.
Try and schedule the closing date of your current home prior to the closing on your new home. Temporary housing
is generally a better situation than two mortgages.
Take a close look at what price you’re going to ask for your home. Your Realtor will help you to ensure it is realistic in the current market.
When you get an acceptable offer, check the buyer’s credit history. You don’t want any surprises that are going to
delay things. If you’ve closed on the new home, but haven’t sold the old one, consider renting it out or revising your staging strategy.
Same Market or Across Country
Generally, if you’re buying and selling in the same market, you can negotiate closing dates to work for you. But when you’re
dealing with a cross country move, it’s a lot harder. A real estate professional really comes in handy at this point. Legal
documents can be faxed or sent via overnight courier and your focus won’t be stretched to the limit. You may end up
renting one home or the other, or have to consider a bridge loan. But with local Realtors on your side, the process should be a lot less stressful.
Show Me the Money
Make sure you have a tight hold on, and a clear understanding of, your financial situation. Cash reserves are always helpful,
but never more so than during the purchase of a home. Two to three months is the recommended reserve, but if you don’t have it,
this is where the bridge loan comes in handy. Some lenders are more inclined to make a loan if it’s for the purchase of a home.
If you’re a smart shopper/seller, you’ll accept an offer from someone who’s flexible about move-in dates. It can save you money
in the long run. Too many moves with storage costs can quickly eat up any profit you may have made in the transaction.