Real estate transactions will involve many challenges, whether buying or selling a home. Purchasing one property while letting go of another is not as simple as “sell today, buy tomorrow” but rather complex. Several steps must be taken to prepare for your sale, such as ensuring repairs have been made and cleaning, decluttering, and staging the home for showings. During this time, you’ll also be viewing homes.
There are financial considerations to make, whether securing the funding to purchase or ensuring your current home is sold for top dollar. Let’s not forget that real estate deals take time, and the more complex a transaction is, the longer it takes to close. When you’re attempting to purchase and sell simultaneously, the stakes might be high, but the reward is also significant.
The most important thing you can do when buying and selling
a home at the same time is to plan and prepare. There are several ways to achieve your goals, so read on to learn how to sell your home and buy a new one with less hassle.
Purchasing a home before you sell
One way to buy and sell more conveniently is to purchase your new home first. This will allow you to find your dream home, act on it, and remove the fear of where you will live when your current house sells. This also means you only have to pack and unpack once and will avoid needing a storage unit or short-term rental, which can be costly. Additionally, interest rates are still rising
, which means the sooner you lock in what you want, the more money you’ll save over the loan's lifetime.
It is also possible to obtain a bridge loan, a type of short-term loan that can fill the gap when full financing isn’t yet available. This loan typically has high-interest rates and must be backed with collateral, so avoiding this loan will go a long way in keeping the process simple.
However, purchasing a home before the previous one has been sold can be a tremendous financial burden. If there are delays in selling your current home, this could mean maintaining two mortgages, and even if that is financially feasible, it’s certainly not something you want to keep long-term. If you’re not sure you can support two mortgages, consider the alternative: selling before purchasing a new home.
Selling a home before you purchase
There is far more financial freedom in achieving your goals by selling your home before buying a new one. Lenders are more likely to offer financing if you are eliminating the burden of two mortgages. Purchasing with cash can even solidify the offer, giving you better odds over the competition when it’s time to put in an offer on a new home.
The problem with this method is that your home may sell too fast. This could be problematic if the sale is quicker than planned and you’re forced to find temporary housing. Short-term housing can add up quickly, and storage units become tedious and expensive. While many people buy and sell simultaneously, the odds of closing both deals on the same day are unlikely. You can take steps to ensure that everything goes smoothly, though.
How to help the process go quickly and easily
There are several ways to ensure this process goes quickly and easily, starting with your financial health. We know it’s unlikely that both transactions will happen on the same day or even within weeks of each other, so being prepared for this will help you to avoid any financial burdens. Determine how much you can afford or want to purchase, where the money will come from — a loan or cash from the previous sale — and if you can afford to maintain two mortgages for any given time.
Prepare your home for sale
You’ll also want to ensure your current home is ready to sell. The sooner you get started, the easier things become. Preparing a home to be listed might seem straightforward, but it’s labor-intensive and involves many details. Your home should be in its best condition to attract potential buyers and ensure you have a seamless move. If there are any areas of your home that need updated, now is the time to do so. Though you’re not expected to make significant renovations, specific updates, like renovating the kitchen or bathroom, will help create a lasting impression on buyers and increase your return on investment.
Think about your must-haves in your new home
While you’re making it easier to sell your home, you can also make purchasing a new home much more manageable by knowing what you want. While many people have the benefit of time and the ability to fuss over minor details, maximizing time is the best choice when you’re on a tight timeline. This isn’t simply about the number of bedrooms and bathrooms you want, though. Dive deeper and create a list of everything you desire, from square footage to layout and storage preferences. Maybe you need a home office or bonus room or prefer a large backyard with a pool.
Work with a local agent
Above all, it’s essential to know when dealing with simultaneous real estate transactions that delays are inevitable. While it may seem like buying and selling are similar, their timelines and requirements are very different. Working with a trusted real estate team with experience in helping clients sell and purchase real estate simultaneously will be crucial to your success.
Contact Connie Antoniou for your real estate needs
Whether you are selling your home, looking at homes for sale in Wynstone
, or both, luxury real estate specialist Connie Antoniou is here to help. With over 35 years of experience and consistently ranked among the top 1% in her field, Connie has what it takes to help you find a home you love and secure a maximum price for your property at the same time. Contact Connie today
for a complimentary home valuation and consultation.