The Best Way to
Buy a New Home While Selling Your Existing Home
Buying a home and selling a home at the same
time can be one of the most difficult and nerve wracking of all real estate
transactions. Many people wonder how to juggle the selling of one home with the
purchase of another. They may be worried that their home will not sell by the
time the money is due on the new home, or that they will be unable to find a
suitable home after their home has sold.
These are certainly valid concerns, but there
are steps the smart homeowner can take to increase the chances of a smooth
buying and selling transaction.
Right timing to buy and sell
The timing of the two transactions can be very
important. Many people find that they have the best chance of buying and selling
a home in the spring and summer months. The spring and summer months of the year
are typically the time when the inventory of homes on the market is at the
highest level. If you need to sell your home in the fall or winter of the year,
the time period between finding a buyer for your current home and finding a new
home could be much longer.
Add contingency clause
It is also a good idea to tie the sale of your
home to the purchase of a new home. Consider specifying in the sales contract
that the sale of your current home is contingent on your finding a new place to
live. Failure to write this contingency into the contract could leave you
searching for a temporary place to live if your home sells before you find a new
one. It is fairly easy to add a clause to your sales offer that your offer is
contingent upon the sale of your existing home. This will protect you in case
your home takes longer time to sell than anticipated.
Sell first buy later
You’re encouraged to put your home on the
market before you begin the search for a new property. That time differential
will allow you to gauge the local housing market and give you an idea of how
long it will take your home to sell. It will also give you the ability to
negotiate the escrow period in order to give yourself plenty of time to find a
new place to live.
When buying and selling a home, it is a good
idea to have the transactions close simultaneously if at all possible. This will
help you avoid the situation where you have to get out of your present home
before you can move into your new one.
Utilize same services
It is also important to remember that you are
not obligated to use the same agent for the purchase and sales transaction. That
said, using the same agent for the purchase and the sale might give you leverage
when it comes to negotiating the real estate commissions.
Even though it is not necessary to use the same
real estate agent for the purchase and sale, it is advised to use the same title
or escrow company and the same real estate attorney to handle the transfer of
both properties. Using the same companies for these important transactions will
help ensure that both transactions go as smoothly as possible.
In addition, make sure you get all your
financial documents in order and to fully investigate your financing options
while your home is on the market. This is crucial, especially, for buyers who
are selling their current home and looking for a more expensive one.
Furthermore, having a pre-approval loan document in hand will give you greater
negotiating power on the purchase of your new home. Using the time your home is
on the market in a constructive way will help you a great deal.
By
Andrew Lo
Links to other useful web-sites |
|
| |
|
|
| "FSBO" stands for "for sale by owner" and refers to practically any type of property being sold with no realtor assistance. Going FSBO lets you avoid paying thousands of dollars in real estate commissions. Homes for sale by owner save buyers and sellers s |
| | 
