In this second part of the “Love it or Leave it” series, we talk about strategy and timing. In real estate, the phrase timing is everything is only secondary to location location location. If you are thinking that 2017 will be the year you move into another house, you may be wondering if you should sell your current home before buying another. There are advantages and disadvantages both to selling first or finding your next home first.
You must first determine the financial side of your move. You must decide if you be making more than one house payment or have two loans at once. This will not only depend on your comfort level, but what your lender will allow. The second part of the first step is to meet with us to review your list of wants and needs in your new home. This way we can determine what your budget should be so you have this for your meeting with the lender.
If you and the lender determine that you cannot hold two loans at once, then the sale of your property must close before the close of the property you are buying. Sometimes, this can even happen the same day. This is where timing comes into play and the power of your agent in helping you negotiate terms that will work with your timelines.
If you do not need to sell your home before buying another, then your timing is much more flexible. However, if you do, before you start your home search, it is most advantageous to have your home listed for sale. This way if you find a home you want to purchase, this will show the seller that you are serious about getting your home sold.
If you have to sell before you buy, the seller will need to accept your offer based on you selling your home first. This is called a Contingent offer. In this market, they are rarely seen because listings are so competitive. If a seller is faced with two offers – and one of them is contingent, the seller may choose the offer that is not contingent – even if the price on the contingent offer was slightly higher. Therefore, it makes sense to be in contract on your home before making pursuing a new one, so you have a good chance of getting your offer chosen.
However, if you sell your home and close before you find another home to purchase, you may be in the uncomfortable position of having to find temporary living arrangements or even move twice.
There are loan programs out there that help in this situation that are pretty creative. From finding a tenant for your house and use as rental income, bridge loans, and various lending products, there are many options. We can point you in the right direction.
Timing is everything. Several weeks before you are ready to make a move, we will analyze the market and determine a timing strategy that will result in a seamless transition. Our goal will be to put you in the strongest negotiating position to get you the home that will fit your wants and needs. Contact us at email@example.com or firstname.lastname@example.org.