Real Estate Matters
By Elisa Jo Eagan
Each real estate transaction comes with its own set of challenges, but buying a home while selling your existing home compounds these challenges. Proper planning and preparation are keys to a successful conclusion for both transactions.
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. Everything will be time-sensitive, but if you are under severe time pressure, it is important to be very clear about your timeline.
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.
Right Pricing of Your Current Home
You will want to sell your current home for the highest possible price as quickly as possible. That means you will need to right-price your home rather than overpricing it.
Most home buyers typically search for homes in pricing increments of $25,000-$50,000. If it is suggested that the approximate value of your home is up to $400,000, you would be best to list at, or under, that price. This will create increased buyer interest and activity in your home and it will, in most cases, get closer to or at asking price.
Talk to your real estate agent about a price that is fair, but also encourages buyer interest and enthusiasm.
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.
If you are looking to sell and buy your dream home, you may want to put in place a longer process with a stop-over into a short-term rental property to buy you some extra time.
Working With Your Lender
You will need to spend time talking with your lender about the way your financing will work for you.
Depending upon your financial situation, you may need to close on your current home before initiating financing on your next home, or you may qualify for both mortgage loans simultaneously.
There are loan products available that can help you access the equity of your current home to help you purchase your new home, and then pay the temporary bridge loan off when you close. Talk these scenarios over with your lender.
Working With Your Title Company
Depending on the location of the two properties, you may be able to close using 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. Talk to your movers about your options so they can help you determine the most cost-effective and efficient way of facilitating the particulars of your move.
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 into 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.
Regardless of how you plan it out, the goal is to make buying and selling at the same time successful and seamless based on your individual wants and needs.
For real estate advice and questions, call/text Elisa at 609-703-0432 or see TheRealEstateGodmother.com.
For More Real Estate Questions, Information and Advice Contact Elisa Jo Eagan “The Real Estate Godmother” (609)703-0432 and Remember…”There’s No Place Like Owning Your Own Home!”
