Selling One, Buying Anotherleft

In a perfect world, you sell your old home and buy the new one on the same day. Given that things rarely turn out perfectly, here are some things to keep in mind as you negotiate the sale of one house with the purchase of another.


Time it right

Fall and spring are the best times for homes to move and you want to consider the season of the year when buying and selling. And if the closing dates are not going to coincide, a gap – rather than two mortgages – is the better. It is easier and usually cheaper to find temporary housing than juggle two mortgages.


Selling First

  • Selling your home before buying a new one minimizes financial hazards. Even if you have to find temporary housing, it is generally cheaper than two mortgages.
  • Get pre-approved on a loan for the new home. This way you know what to expect and can plan appropriately.
  • Until most of your contingencies have been met, wait to put an offer on a new house. You do not want to be left holding the bag, or in this case, the house.
  • If you are ready to accept an offer on your home, but have not found the right new home, negotiate a long escrow or a sale/lease back. This is the most popular decision and will give you more time to look for the new home. Otherwise, look for temporary housing.

Buying First
It happens. You are only thinking of buying, and suddenly the right home shows up in the perfect location at the perfect price. Now you have to sell your old home quickly. Here are some tips on making things work in your favor:

  • Negotiating a long escrow on this side of the sale works, too. You can also make the purchase contingent on your house selling. This will work better in a slow market, but it is worth a try in any market. You never know what may also work best for the seller of your new home.
  • Try and schedule the closing date of your current home prior to the closing on your new home. Temporary housing is generally a better situation than two mortgages.
  • Take a close look at what price you are going to ask for your home. Make sure it is realistic, and not emotional, in the current market.
  • When you get an acceptable offer, make sure to review the offer carefully. You do not want any surprises that are going to delay things. Making sure the potential buyer provides a Pre-Approval Letter from a lender with their offer would be a prudent request.

Same Market or Across Country

Generally, if you are buying and selling in the same market, you can negotiate closing dates to work for you. But when you are dealing with a cross country move, it is a lot harder. Another good reason to have a real estate professional at this point. Legal documents can be faxed or sent via electronic signature and your focus will not be stretched to the limit. You may end up renting one home or the other, or have to consider a bridge loan. But with someone local in the market on your side, it will hopefully be less stressful.

 

Show Me the Money

Make sure you have a tight hold on, and a clear understanding of, your financial situation. Cash reserves are always helpful, but never more so than during the purchase of a home. If you are a smart shopper/seller, you will accept an offer from someone who is flexible about move-in dates. It can save you money in the long run. Too many moves with storage costs can quickly eat up any profit you may have made in the transaction. 

Working along side The Macklin Team with Sawgrass Realty of the Treasure Coast will help alleviate many stressful situations.  We are truly here to help! Call us today (772) 340-6116.