If you’re thinking of starting to shop for your next home but haven’t sold your existing one, you may be wondering how easy or complex the process will be. Although you already have some experience with applying for a home loan, managing the selling and buying of two homes at the same time can sometimes make you feel like you’ve taken up juggling.
With this in mind, here are six tips to help you retire from juggling while minimizing additional expenses, stress, and possible delays.
1. Work with one real estate agent when selling and buying
This may not be an option if you’re moving to another city or state. But working with an experienced real estate pro can save time and money. In addition to having a single point of contact during this time, a Real Estate Agent can help you make a successful offer on a home, get a better price for your existing home, and assist you with scheduling important dates.
2. Stage your home for a faster sale.
Be sure your home is clean and uncluttered before potential buyers arrive, and your “curb appeal” tempts potential homebuyers to want to enter your home. A professional cleaning service can be well-worth the expense as they’ll view your home as a visitor would, and can help you to identify problem areas.
You may have wondered if “staging” your home is worth it – usually it is. In addition to cleaning your home, staging gives you the opportunity to highlight your home’s best features while minimizing cosmetic flaws. For example, removing some furniture may contribute to the illusion of larger rooms. Increasing your home’s light – either by adding lamps, opening blinds or both – will make a home more inviting. One of the advantages of working with an experienced Real Estate Agent to sell your home is that they will be able to offer staging advice, and can refer you to staging companies they have used before if you need professional assistance.
3. Be sure to plump up your cash cushion
Be sure you have some savings on hand before you put your home on the market. Here’s why:
If your existing home sells before you can move into your new home
, you may need to find a temporary place to live so the new owners can take possession. This will require funds to cover living expenses, especially if you end up requiring a short-term rental. You may also have to pay to store your furniture and appliances and find a suitable boarding facility for your pets.
If you buy your next home before selling your existing one
, you’ll be temporarily responsible for twice as many monthly home loan and utility payments. Be sure to do the math beforehand, so you can make sure you have enough funds available.
If the thought of paying two mortgages for more than a month or two is hard to swallow, you may want to look into a contingency clause
4. Consider adding a contingency clause to your sales agreement
Home buyers and sellers often add contingencies
to an initial sales agreement. These address unexpected
problems such as a low property appraisal, problems with financing, or structural problems found during a home inspection. Contingencies don’t always result in a failed sale, as both parties may opt to negotiate until an agreement is reached.
For example, your buyer may request an appraisal contingency
, which allows them to back out or renegotiate your home’s price if the appraisal value is lower than expected. As a seller, you can ask your existing home’s buyer to accept a contingency that states that the transaction is contingent on your ability to buy your next home within a certain timeframe.
5. Try to be flexible
Perhaps you’ve already decided on the “must haves” for your second home, especially if they are features your first home doesn’t have. Or you’ve decided you won’t take a penny less than a certain price for your current home. If it all possible, it’s best to be open-minded about these factors, especially as delaying your home’s sale or your new home’s purchase could result in delays or additional expenses. This is where you’ll benefit from working with an experienced Real Estate Agent, as they know the market, and know what is realistic to negotiate.
6. Discuss your home financing options with Certainty Home Loans
Your Certainty Home Loans mortgage professional
can help you decide how much home you can afford while guiding you through a potentially complex time. In fact, getting pre-qualified for financing will probably be one of the easiest tasks during your move… finding friends to help you pack is a different story.
Jul 10, 2019