Real Estate Matters
By Elisa Jo Eagan
Each real estate transaction comes with its own set of challenges, but buying and selling a home at the same time compounds these challenges.
Planning Ahead
It is important for you to keep the end goal in mind while at the same time, detaching a bit from the process. No doubt there will be bumps in the road; the less you focus on those the better.
Building a Great Team
Building a great team will help you put together a successful plan for your sale and purchase.
Working with Your Real Estate Agent
Your real estate agent can help you develop a clear idea of your needs and expectations for the process.
If your purchase will be out of the area in another market or out of state, allow your agent to refer you to a qualified agent in the new area where you will be relocating. Their coordination and cooperation will be vital to the smooth running of the process.
Right Pricing of Your Current Home
Of course, you will want to sell your current home for the highest possible price as quickly as possible. That means that you will need to right-price your home rather than overpricing it.
Searching for Your New Home
You will want to keep your timeline in mind when searching for your new home. That may mean that you will need to put more time into your home search or be a bit more flexible in your requirements.
Working With Your Lender
You will need to spend time talking with your lender about the way your financing will work for you during the time you are freeing up the money from the sale of your current home to purchase your new home.
There are loan products available that can help you obtain the equity of your current home in order to move forward to purchase your new home, and then pay the temporary “bridge” loan off when you close.
Working With Your Title Company
Depending on the location of the two properties, you may be able to close at the same title company on both your sale and purchase. Alternatively, you may be able to conduct closing by having the closing documents sent to you by mail to be signed and notarized for your convenience.
Working With Your Movers
Unlike a standard move, you may need to have your household goods packed and stored for a while before they arrive at your new home. You may need to have a portion of your items stored, and a portion of your items moved to a short-term rental.
Short-Term Lease Options
You may have visions of a same-day sale and purchase. While this does happen, it requires everything to proceed perfectly with the buyers and sellers on both sides of two different transactions, as well as with both of the lenders involved.
Just in case this does not occur, it is a smart idea to put a back-up plan in place. If you need more time between closings, you may want to rent month to month or stay in a short-term rental that is furnished while your personal belongings are stored until your new home is ready for your occupancy.
Rent Back Your Current Home
If you know when your new home will be ready for you, it may be possible to negotiate a rent-back on your current home.
