In a perfect world, selling your home and purchasing a new one would be a seamless process, with you merely shifting from one stack of paperwork to the next. The reality is that it’s often difficult to purchase with a contingency, and would-be buyers may have their dream homes slip away because of a hiccup with their home sale. However, there are ways to streamline your transition from old home to new.
House hunting
If you’re upgrading your current home, but remaining in the same real estate market, the process of selling your home and buying a new one is a little easier, if only because of time and convenience. When you’re sure you want to make the move, begin house hunting in earnest while preparing your current home for listing.
Analyze the market
Above all, the climate of your local real estate market should direct your home selling and buying plan. In a seller’s market, inventory tends to be lower, meaning your home is likely to sell quickly. On the flip side, selling during a buyer’s market means there is an abundance of inventory on the market, making selling your home more competitive; it may take longer to sell or that you will end up selling your home for less than you expected.
Take stock of your finances
If you’re realistic about the process and prepare yourself for the possibility of time between closings, you’ll be in better shape from the outset. Take a look at your finances — can you handle two mortgages in the event your home takes a little longer to sell? Obviously, paying two mortgages isn’t ideal, but if this is your dream home, it may be worth the short overlap.
Have you saved enough for a cash purchase? If you’re fortunate enough to have savings to cover the cost of your new home, then you’re not bound by needing your home to sell before you purchase.
Sell, then purchase
Should you sell your house before buying a new one? Again, this is dependent upon your circumstances. Can you rent in the interim? Do you have family nearby that can host you for a short period before closing? Financially, selling your home before purchasing a new one makes sense because you know exactly how much money you have to spend after closing. It’s also easier to put an offer on a home because it won’t be contingent upon the sale of your [already sold] home; sellers are often reluctant to take the chance on offers with contingencies.
Take advantage of new products
Working with a top agent will increase the likelihood of you being able to sell your home and close on your new place seamlessly. As you’ve read, it’s not always a given. However, companies are now offering options to help people transition from house to house effortlessly.
HomeLight’s cash close product offers home sellers — and buyers — the ability to put offers on homes with confidence. Utilizing the trade-in option, sellers can apply for a cash closing and receive a guaranteed offer on their home from HomeLight. Once you put an offer on your dream home and it’s accepted, HomeLight purchases your home at the guaranteed price — no surprises. This allows you to put in a cash offer for a new home with the guarantee that your home will sell.
So, before getting overwhelmed by the thought of coordinating a carefully choreographed home sale and purchase, weigh your options. There are plenty of ways to approach your sale and finding a trusted real estate agent is the perfect starting point. Happy house hunting!