Buying & selling a home during a hot real estate market can offer many benefits to you as a Seller, however, you may also face some challenges as a Buyer. It's imperative to have a solid plan in place with a knowledgeable and capable support team to help you accomplish your goals. Here you'll find a few tips to help prepare for this upcoming transition.
Hire A Seasoned Real Estate Agent
One of the most important people that can help you succeed in this market is your real estate agent. Your agent can help you navigate buying & selling at the same time. This includes helping you find your dream home & writing a strong offer that gets accepted. They can also help you prepare your house for the market so you'll receive strong offers with terms that work for you & your timeline.
Work With A Lending Expert
Before you begin, if you'll need a mortgage on your next property, you must contact a lender to start the process. In a Seller's market, there's no time to waste when you find the home that's 'The One', so begin working with a lender to get your financing in order. This means getting a Pre-Approval letter, setting up a Bridge loan &/or a HELOC (home equity line of credit). By having this paperwork in place, you can move quickly when you find the right home. Your lender will be able to show you all of the different loan scenarios so you can determine which one will be the right one for you, so make sure that you work with someone who is an expert in their field and someone you trust. Just like your realtor, the lender is a vital part of the real estate transaction!
Prepare Your Home For Market
In the meantime, while you're waiting for the right home to come on the market, start preparing your house. This includes decluttering, downsizing, painting, making repairs, cleaning & staging. By doing this, if you'd like to hit the market as soon as you find the right home, your realtor can 'flip the switch' and make your listing 'Go Live' immediately. The goal would be to get you the ideal closing date that works in conjunction with the home you are purchasing.
Home Sale Contingency
If you've run the numbers and you've decided that you cannot buy without the safety net of selling, you can write a home sale contingency into your offer. This means that you will only purchase the house you've made an offer on IF you are able to sell your home. You can even arrange to have the closings concurrently. This is a tougher contingency to get accepted in a strong Seller's market, but real estate agents are skilled in helping you navigate the complex world of buying & selling real estate as well as writing contracts that protect you while still make the offer desirable for the Seller.
Post Occupancy Agreement
If you're concerned about your buying power, selling your house first is the best option for you. You'll then know exactly how much money you have to to work with when purchasing. To avoid the dreaded double move, you can request that post occupancy agreement from the buyer who purchases your home. This means that you get to stay in your home for a designated amount of time after you've sold your house to the new buyers. This gives you some time to determine your next steps, whether it's purchasing another home, temporarily renting or even moving in with family or friends for the interim. Post occupancy agreements can vary so it's best to consult your realtor to find out what the regulations are in your area.
Extend The Closing
If you'd rather not journey down the post occupancy road, you can always ask for an extended closing date. Most closings happen within 30-90 days from the date the offer is accepted. You may need more time, so you can request this upfront when you are negotiating the offer as a way you give yourself more time to find your next home.
Whether you're just exploring your options or ready to begin the buying & selling process, contact us today, we are real estate experts who help our clients buy & sell simultaneously all the time. Let us help you as well!
Contact us today and let us help you determine what's right for your family!
Sara Severson
