Buying a home is stressful. Selling a home is stressful. Doing both at the same time can seem unimaginable. But if you go into this scenario with an action plan and some support, you will come out on the other side of the process just fine.
GET TO KNOW YOUR MARKET
Before you put the rubber to the road, you need to know the market where you are selling your current home and you need to know the market where you are looking to buy. Putting the right value on your house will position you well to move your home quickly. And knowing the new market will mean that you can find several homes that are options for you and your family. Some home sales fall through for various reasons. Some buyers make an offer and want your home for a quick move in. Do not leave yourself with only one option for a new home. Speed bumps are part of the process when there are so many moving parts.
PLAN AND BUDGET
Are you ready to have two mortgage payments at the same time? Do you know what contract contingency is? What about a rent-back agreement? Bridge loan? If not, that’s ok. But make sure to brush up on what your options are when it come to your upcoming sale and purchase.
- Rent-back agreement – allows for the seller to remain in the home for a short period of time in exchange for rent or a lower sale price to the buyer
- Contract contingency – option for the buyer that home sale is dependent on the sale of their old home first
- Bridge loan – short-term loan to be repaid upon the sale of first home which allows you to use those proceeds to go towards purchase of new home. Allows for you to have two homes at the same time.
HAVE A BACK UP PLAN
Real estate transactions are complicated and involved a lot of people. Remember that you are just one part of that process so things are not always going to line up with your needs. If you are the buyer, there are a seller on the other side with their own needs and timeline, too. If you can be a little flexible, things can move more smoothly.
- Have you looked into rental options in case your home sells before you have found a new house?
- Do you have your finances locked in with your lender to avoid delays at closing?
PREPARE FOR THE STRESS
There are lots of things that will stress you out during this process so try to lean on your agent for guidance. They are there to help streamline the process, keep up with paperwork and deadlines, and make sure that you come out on the other side with everything you wanted. It will not always be easy but it will be worth it once you have the keys to your new home.