In an ideal world, you’d be able to comfortably sell your current home before purchasing a new one. After all, no one wants to be in the position of having to pay two mortgages. The sad reality is that this is not always doable. Potential clients frequently ask us at Berkshire Hathaway HomeServices if they should place their property on the market first or buy a home first.
The solution is not straightforward, and several factors must be taken into account. However, we want to emphasize that buying and selling a home at the same time is doable, and we can assist you in doing so. Today, we’ll discuss a few tactics that will assist you in doing so successfully. Remember to contact us at (310) 373-0021 if you need help.
Have an eye on a house but aren’t ready to make an offer?
One alternative is to keep a home in mind that you are willing to buy if your current home receives an offer. It’s a good idea to have a couple distinct viable possibilities in mind. This lets you to move into a new house as soon as your current one sells, rather than having to wait months for it to sell.
List your home for a reasonable price and make a reasonable offer
The trick to buying and selling a home at the same time is to make sure your house sells quickly. The easiest method to do this is to engage an appraiser and obtain a fair market value for your former residence.
If you have unlimited time, you may want to attempt to get top dollar, but if you are in danger of paying two mortgages, you will save money in the long run by selling your property quickly for less than the cost of having two mortgages or waiting three months to make a few thousand dollars more.
Think about the financial and credit consequences of buying first vs. selling first
When selecting whether to buy or sell first, there are several aspects to consider, including your financial status. If you already have a mortgage, you may find it difficult to get accepted for another because your debt-to-income ratio will be skewed. Yes, buying first makes moving easier, but it might be tough to qualify for a second mortgage while still paying off your first.
There are choices that allow you to spend more time at home
There are additional options for selling your home while remaining in it for a length of time. A rent-back agreement allows you to negotiate with lenders and buyers to remain in the home for up to 90 days following the sale. Depending on the terms of the agreement, you may be able to negotiate a lower selling price or pay the buyers rent. It may, however, alleviate some of the stress of locating a new house.