When customers call us, they often want to buy a new home and sell their current one to fund the purchase. However, in a competitive housing market, it's essential to prepare your home for sale or list it before making offers on new homes.
If you currently own a home that you need to sell, coordinating the sale of your existing home with purchasing a new one requires careful planning. Here are some tips and strategies to help you navigate this process:
1. Assess Your Financial Situation: Before starting the home-buying process, understand your financial situation. Calculate the equity in your current home to determine how much you can afford to put towards the down payment for a new home. If you plan to finance your next home, speak with a lender to understand your purchasing power and whether you must sell your current home first.
2. Timing Is Key: Coordinating the sale of your existing home with purchasing a new one is crucial. Our team can help you navigate this timing process to avoid owning two homes simultaneously (or being homeless temporarily).
3. Explore Bridge Loans and Contingency Offers: Consider a bridge loan if you find your dream home before selling your current one. Another option is to make a contingent offer, where your purchase offer is contingent upon the sale of your current home. When selling your home, make it contingent upon obtaining suitable housing before the sale can close.
A home sale contingent offer is more appealing when your home is already listed on the market or under contract.
4. Work with a Real Estate Professional: It's crucial to work with a knowledgeable and experienced real estate professional to navigate the complexities of buying and selling real estate simultaneously and having contingencies in place to protect you if something falls through.
5. Be Prepared for Delays: Be prepared for unexpected issues when making an offer on a new home. Having a backup plan and flexibility can help alleviate stress during this transition.
In my experience, it's best to have your home ready to list before looking for new homes. If you can finance the purchase before selling your home, that's even better. Our agents can help pair your home up with buyers willing to give you time to find your next house and get your home under contract while you are searching. If you are considering purchasing a home and need to sell your existing home, give us a call to create a plan that will work for you.
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