By Emilio DiSpirito, Realtor/Team Leader,
DiSpirito Team with HomeSmart Professionals
Buying a home before selling your current home is not
really an option for most. But, selling and buying a home at the same time with
the right guidance is not as hard as you may think.
About 27% of Americans don’t make a move because they
feel that this is impossible.
While you can’t control everything that happens during
the complicated buying and selling process, there are some things you can do to
set yourself up for smooth closings.
Choose a reputable real estate agent and
prepare your home for the market.
An experienced local
agent can help you determine the market value of your home, ensure you have
support through the entire process from preparation to negotiation and staying
on track when it comes to the local market.
Inspect. Stage. Price.
It helps to have a pro
by your side. Buying a new home at the same time as you’re selling your old
home is all about timing. Your agent is going to make sure that your home is
priced competitively, for the condition, location and the amenities that it
has. Then, they’re going to go ahead and work backwards from there to show you
exactly what you’re going to walk away with.
Know the Numbers
Understand your financials before embarking on your
buying and selling journey. Another important professional you’ll need is the
right mortgage lender.Stay within your limits and take time to digest
your financial situation – especially equity and loans you qualify for. Chose a
lender that offers upfront underwriting. It’s a powerful tool that allows you a
full mortgage approval only contingent upon appraisal. Sellers will favor this
when you place offers or in the event you are in a multi offer situation when
How much equity?
Simply put, the amount left over when you take the
current market value of your home and deduct what’s remaining on your mortgage,
transfer taxes, repairs, brokerage fees, etc. Also, consider if you’d be able
to purchase without tapping into that equity. Remember, the equity you have in
your home won’t be accessible until after the sale closes unless you’re able to
pull out a line of equity, rent your home out and use that cash to cover the
cost of your new home. (You may have several options!)
List Your Property
After you’ve found an agent, went through your
financials, and have thoroughly discussed your options with your realtor – it’s
time to put that house on the market!
Now you’re probably wondering…
what’s next? Do I start looking for homes first? Do I wait to find the perfect
home to buy then put my home on the market? Where will I go if I don’t find
housing once I sell?
Put your seller hat on and imagine three separate
offers coming in on your property, all contingent upon a successful sale of
I’m guessing you would go with offer B as your first
choice, offer A as your second choice and C has no chance. Don’t be C.
Well, what if we find a buyer for our home
before we find a place to live?
To make sure your transaction goes according to plan,
this is where the language of your agreements and communication with your real
estate professionals is key. Your agent can help you comb through the offers
and negotiate a contract that benefits you and your timeline.
What if we find a home to buy before our
home is sold?
Your agent will assist with presenting your offer in
its best light. There is a very tactical way of doing this and this is where
you will lean on your agents experience.
The Bottom Line
Why? Because you don’t
want to risk carrying two mortgages, gives you more room for negotiation, and
results in a higher selling price!
When you are trying to
sell your home and buy another in a short period, the worst-case scenario is
getting your home sold and then finding you don’t have anything suitable to
purchase. It is normal to feel a little nervous about trying to juggle so many
balls at once. In rare cases, your agent will assist you in finding temporary
housing until you find that right home. Making sure you are fully prepared,
financially, mentally, and even packing wise. It is important to listen to your
real estate agent and don’t take shortcuts!
Emilio DiSpirito, Realtor/Team Leader,
DiSpirito Team with HomeSmart Professionals. His website is www.DiSpiritoTeam.com