Selling your current home while buying a new one is a challenging although sometimes inevitable situation. If you find yourself in this position, here are some valuable tips you need to know to help make the process as smooth as possible.
Know upfront that it will be stressful
Buying or selling a home by itself can be stressful, so having a go at both simultaneously is going to add to that stress. You will likely face scheduling issues and the possibility of carrying two mortgages for a period of time. It will be emotional and challenging – but not impossible. Knowing ahead of time to expect some tough decisions during the process will help you get through it.
Know the market
Arm yourself with knowledge about the market, both from a buying and a selling perspective. Does the market favor buyers or sellers? Use this information to strategize the timing of your new home search and the listing of your current home. Knowing in which position you will be strongest will help you make timing decisions.
Know your finances
In a perfect world, your current home would sell and you would move directly into your new home. But because the buying and selling process includes so many variables, that timing might not always work out. If your current home does not sell before you move into your new home, do you have the ability to carry two mortgages? Will you have enough money for the down payment on the new home before the old home sells? In some cases, bridge financing is available, which is a short-term loan that is backed by the equity in your old house that can then be applied to the down payment for the new house.
Know about contract contingencies
You can request a contingency in the contract for your new home that the sale is contingent upon the successful sale of your old home. In a competitive market sellers may be hesitant to enter into this type of agreement and it could result in your offer being rejected. However, if the home you’re considering has had trouble selling, this could be an attractive option for both parties.
Know there will be some pressure
You may find that your old home sells before you’ve find the right new home for you, or that you’re considering accepting a low bid so you don’t have to carry two mortgages. Don’t let anxiety force you into making a choice that isn’t in your best interest. Instead, have a plan for a short-term rental in place so you don’t feel like you have to make a hasty decision that you might regret later. It will take some of the pressure off knowing you have a back-up plan.
Know that you have a realtor on your side
One of the best ways to navigate the turbulent waters of buying and selling a home at the same time is working with a knowledgeable realtor who is an expert in your market and has been through the process before. If you are buying or selling a home in Laguna Beach, please don’t hesitate to contact an agent from The Stanaland Group.