In today’s competitive housing market, it can be challenging to figure out how to make it all work when you want to purchase a new house but must sell your current one. If you wish to buy a home while selling your current one, you must plan wisely.
Purchasing a new property while simultaneously selling your primary abode may raise tax and financial worries, resulting in a fearful or complex transaction. If you find yourself in this situation, continue reading to know how you can buy and sell at the same time without getting headaches.
- Do Your Research
Consult a real estate agent who can explain and break down all of your alternatives before deciding on the best plan for purchasing a property while selling your present one. The essential aspect is to collaborate with someone who is informed and conversant with all of your possibilities. Before making any decisions, a real estate agent can provide you with an estimate of how much your house might sell for right now and how quickly. Additionally, they’ll establish your schedule and devise a step-by-step strategy that works best for you.
The most challenging element will be saving for a down payment on a new property while your equity and investment remain attached to your prior one. Your realtor will certainly inquire about the amount of money you have available to put down for a house if you buy one today.
Additionally, if necessary, they will explore financing options with you, including a bridging loan or a home equity line of credit. You can learn more here if you’re interested in bridging loan options. All of these factors are taken into account by your agent. Due to the near-certainty of some overlap between sales, establishing an easy-to-follow schedule will help alleviate some of the tension.
- Sell Your Home With A Real Estate Agent
When you list your home with a professional real estate agent, you’ll always have someone available to answer your questions and assist you in resolving your situation. First, they can help you showcase your home and determine necessary improvements.
They can aid you in identifying the most appropriate photographer and stager for your property. They will then be in charge of locating purchasers, marketing the open house, and displaying the property while you are away.
Additionally, they might be able to connect you with other agents who can assist you with marketing your home. A knowledgeable real estate agent familiar with the community and market trends can decide a fair price for the home, ensuring that it does not remain on the market for weeks on end. It can save you a lot of time and effort. They can assist you in securing temporary lodging while your new house is under construction following the sale of your current property.
- Begin Your Search For A Home
If you’re transferring inside the same city, you can sell your present home and acquire a new one through the same agent. On the other hand, you’ll need to hire a new real estate agent if you’re relocating. In this case, a real estate agent is crucial because they are more familiar with the community.
A qualified representative should be able to interpret your specifications in this instance. They should also assist you in arranging temporary lodging while your current home is sold and your new one remains unavailable for occupancy.
If you’re buying a new house in a seller’s market, physically inspecting the properties before placing an offer may be difficult. While purchasing a home without seeing it first is not recommended, a knowledgeable agent can assist you in navigating the process. Additionally, the ideal realtor should be familiar with the type of home and neighbourhood you are interested in.
- Create A Contingency Plan
Regardless of how precisely you prepare for your transactions, surprises can arise. They may not occur on time — or at all. If your contract has contingencies, you should be able to reschedule closings or terminate the deal with minor financial loss. If you sell your present residence but have not yet located a replacement, you will need to get a short-term rental.
If you cannot fit all of your items into a rental unit, keep in mind the added cost of a storage facility. Additionally, you could suggest that your purchasers enter into a rent-back agreement, which would allow you to remain in your present house post-closing while paying rent to the new owners until you can relocate.
If you purchase a new home without first selling your current one, you will be responsible for two mortgages. Consider acquiring a bridge loan or a short-term home equity line of credit to cover expenses until the property is sold.
Takeaway
It can be challenging to purchase a property while selling your current one. Although much is contingent upon other individuals and market conditions, you have many possibilities. Consult your mortgage lender and real estate agent and weigh your options to choose the best course of action for you and your family.