Due to the poor housing market in the years following the recession, many homeowners who would have sold their homes held on to them. As the market has improved, homeowners are becoming more comfortable with putting their properties up for sale as seen in the major increase over the past few years. If you’ve decided to sell your home this year and buy anew, then there are a number of things you need to consider and plan in order to make the transition seamless.
Prepare for the Challenge
It’s rare for any homeowner to be able to sell their old home and find a new home at the very same time. Usually, one of two things happen – you sell your old home first, which means you’ll have to find a temporary place to live until you find a new home to buy, or you find a new home to buy first, which case you could end up paying the monthly mortgage payments for two separate houses at the same time. You should plan for the challenge of dealing with either of these situations by making sure that everyone in your family is on the same page – this will help make the process much smoother and can help to reduce some of the stress involved with buying and selling at the same time.
You have to know what the local real estate market is looking like. How long does it take properties like yours to sell in your area? Will it be difficult to find a new home in the area you are looking? This kind of information can not only determine whether you end up buying or selling first, but also what kind of property you can afford to buy. To obtain such information, you should speak with a real estate agent. An agent has the resources to be able to help price your home by comparing it to similar homes within the area as well as to provide you with detailed information and expert advice concerning the local housing market.
Figure out your finances
You don’t want to be in a position where buying the house that you want is going to be determined by whether or not your old home sells, otherwise, you may be stuck in limbo for quite some time. Crunch the numbers and meet with a lender or mortgage broker to find out what kind of down payment you’ll have to make on the type of home you’re looking to buy. This way, you’ll know if you can afford to buy a new home before you sell your old home.
Create a plan
Using all of the information you have gathered, including what you know about the local real estate market and the state of your finances, make a decision on whether it’s in your best interests to sell your old home first or to buy a new home first. If you are financially able, you may want to find a new home to buy first so that you don’t have to worry about finding temporary housing. However, if you’re on a budget, selling your old house first should be a priority because you may not be able to afford paying monthly mortgage payments on two different properties.
The process of buying and selling at the same time is a big task, but in no way unattainable. By planning ahead, you can help make the process as smooth and as stress-free as possible. For any help in guiding you through the process, please don’t hesitate to contact us!