If you need to sell your current home before you can buy your next one, here are a few tips that can make your transition easier.
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It’s a very common situation in real estate to have to sell the house you currently live in before you can buy the next one. There are some important things you need to know if you have to make this transition.
First and foremost, talk to a lender. If you want to pay cash by taking the proceeds from your original sale to cover the next one, that’s great. Talking to a lender, though, will give you more flexibility. Depending on where you’re looking to buy and that area’s market, you may not be able to have the contingency of the sale of your current home when purchasing your new home. Working with a lender will give you some flexibility to finance the purchase, then when you sell you can either pay off that loan or pay it down in a one-time lump payment that also drops down your mortgage.
Second, make sure you’re dialed in with your agent about where you’re moving to. What kind of contingencies will the market support? How long are those contingencies? How long will it actually take you to sell your house? Knowing the answers to these questions will be key when making your offer.
When you’re getting ready to sell, your agent will make sure you’re completely dialed in on what’s going on in the market, what your realistic timeframe is, and what you need to do to get the most money in a reasonable amount of time.
I have a client right now who badly wanted to sell their house to a certain party, but that party also had to sell their house before they could buy it. Now they’re not just looking at one sale and purchase, but two. Needless to say, that complicated the whole process. Can we get it done? Absolutely, but it adds to the overall stress of the situation.
Whether you need to buy and sell simultaneously to move up or downsize, make sure you have all of your knowledge dialed in. Talk to a lender, know what it will take to get to your next house, and know what the market will bear. All of that will help you make an easier transition.
If you have any questions about this topic or are thinking of buying or selling a home in our market, please don’t hesitate to give me a shout. I’d be happy to help.