If you’re already a homeowner, the thought of a household move may seem daunting. There’s a lot to consider, such as whether it will make more sense to list your current home or make an offer on a new home first. Fortunately, with a few tips in mind, you can navigate this complicated process gracefully and confidently.
Know the Market
The most important thing to decide right off-the-bat is whether you’ll sell your current home or make an offer on a new home first. This can be a difficult choice because both options have some potential drawbacks. For example, if you list your current home and it sells immediately, you might find yourself scrambling to find a new home and get an offer accepted.
On the other hand, if you make a deal on your new place first, you might be left juggling two mortgage payments if your current home doesn’t sell quickly.
Ultimately, it boils down to having a solid understanding of the current market in your area. In general, if homes are selling quickly and your home is in decently good repair, you should have no trouble selling it after you’ve found your new place. On the other hand, in a buyer’s market, you may be better off selling your current home first so you don’t end up with two mortgages.
Consider Your Financing
One of the significant benefits of selling your current home first is applying the profits from selling towards a down payment on your new place. This can save you from having to take out an additional loan or scramble to come up with a substantial down payment, closing costs, and other expenses.
If you plan on buying your new place first, consider exploring some financing options that will be less stressful than dealing with two mortgages. Bridge loans, for example, are a popular option among borrowers buying and selling simultaneously. Specifically, a bridge loan allows you to borrow up to 80% of your home’s value to pay off your old mortgage while using the remainder towards a down payment and other expenses related to the new house.
Choose the Right Agent(s)
Consider the power of a knowledgeable real estate agent to help navigate this complicated process. If you’re buying and selling in the same area, you can find one agent to represent you for both transactions. However, if you’re buying in a different location, find a separate agent for each transaction. This way, you can secure an agent with local market knowledge and experience, making the entire process easier and less stressful.
Ultimately, simultaneously buying and selling a home can be chaotic and stressful, but people always do it. With these tips, you’ll be in good shape whether you decide to sell your current home or make an offer on a new home first.
And when it comes time to move, our team will be here to help. Contact us for your free moving quote today!