So you want to sell your home and buy another one at the same time. The question is, can you do it?
Real estate experts say that you can, but it will take a precarious juggling act to do so. There’s very little room for mistakes, especially since there’s a massive amount of money coming and going during this time. Still, the rewards are great once you pull it off.
First things first
The important thing is to be prepared with the right tools as you get into the home buying-cum-selling fray. The “right tools” means the knowledge and expertise of a professional who has worked with others previously in the same situation as yours. They can help you in your juggling act by finding you the best home options for your budget and making the right marketing moves to sell your property.
In the Palmetto State, you’ve got Lake Greenwood, SC real estate agents like The Wiley Team who can help you out as you tread on this path toward home buying and selling success. We can help in maximizing your budget and negotiating for a possible contingent offer.
Timing is everything
Before putting your money on anything, research the market conditions in your area, as well as in the location you plan on moving into. Information from these should tell you the best times to buy and sell.
There are two basic real estate market conditions to look out for:
The seller’s market – This is a situation where there are more buyers compared to sellers. The real estate inventory in a particular area falls short of the demand. In this case, selling your home may be faster than finding a new place to move into. If you manage to sell your current home before you can transfer to a new house, you can opt for a rent-back option. For this, you present the buyer with the contingency that you be allowed to rent the newly-sold home from them until you can move to another one.
The buyer’s market – On the flip side, there are too many properties for sale in a particular area and not many buyers checking these out in a buyer’s market. Under these conditions, you will likely find a new home faster than you can sell your own house. You can end up maintaining two homes at the same time. Thus, you’ll want to focus more on selling your existing home before closing on a new one if this is the market your area is currently experiencing.
Sell first before buying a property
In truth, there is a very slim chance that you can do a simultaneous home purchase and sale. At most, one can come within a few days of the other. If you want the option with the least risk, make sure to sell first before buying. That way, you won’t have to take the hit of maintaining two homes at the same time.
After closing on the sale of your current home and paying all the required fees, you know exactly how much money you have in hand to find a new place. Then you can decide whether to upscale or downscale, depending on your budget.
With that said, you should have a contingency in place, especially if the buyer doesn’t agree to the rent-back option. One solution is to store all your belongings in a storage rental – a more convenient alternative than carrying these around while checking out new homes.
Get a financial planner
For a transaction like home buying and home selling within a short span of time, this involves detailed financial planning. Doing it on your own may lead to a misstep and have costly repercussions. Thus, set yourself up for success by letting your mortgage lender or your personal financial manager handle your finances. This expert can help you draft a budget and keep tabs on your available funds. There will be additional costs in hiring one but in the long run, their expertise can save you big bucks and keep you focused on other details of the real estate transaction.
Consider a bridge loan
This is a short-term loan that will give you extra elbow room if your home is not yet sold and the property you plan on buying is in danger of being sold to somebody else. Talk to your financial planner to see if you can afford to take out a bridge loan. Note that these types of loans come with a high interest rate due to the shorter breadth of time to pay your dues.
For top-notch services in this kind of real estate transaction, we, The Wiley Team, can be your realtor in Greenwood, SC who can do the job right. Give us a call today at 864.993.8153 or send us a message here.