Whether you are buying your first home or your third, there is no denying that purchasing a house can be stressful. However, there is one key difference in stress levels between buying your first home and the properties that follow: buying and selling at the same time. Preparing for and placing your home on the market while simultaneously searching for and purchasing your dream home can be difficult to navigate. But it doesn’t have to be. Follow these three tips to seamlessly sell your old home and purchase your new dream house at the same time.
Consider the Market
Whether the market is in a seller’s or buyer’s swing may make a difference in how you approach the selling/buying of your home. It is fairly common to sell first in a buyer’s market and buy first in a seller’s market.
In a buyer’s market, you sell first because you could otherwise end up with two mortgages while you wait to sell your home in a market that is difficult to sell in. In a seller’s market, you buy first because it is assumed you’ll sell your home quickly and you’ll need a place to go. Also, selling your home before buying allows you to gain an advantage in the purchasing process within a seller’s market. If there are multiple offers on the home you want, and all of those are contingent on the sales of other properties, you have a higher likelihood that your offer will be selected because the sellers won’t have to wait.
Not sure of the state of the market, or uncomfortable with the options of selling or buying first? Luckily there is a third option, doing both at the same time.
Hire an Expert Team
The best way to sell your home while searching for a new one is to hire a real estate company that has a team of specialists to work on your behalf. Those specialists, at a minimum, should include a staging expert, a listing expert, and a buyer expert.
A staging expert will evaluate your home and help you stage it to sell for the highest price at the fastest rate. A listing expert will focus on securing top dollar for your home by ensuring it’s visibility on the market through listings on multiple sites, hosting open houses, social media promotion, and more. A buyer expert will work with you to find your dream home, narrowing down your favorite to buy and making sure you are getting the best value possible by negotiating on your behalf and steering you away from common pitfalls and mistakes.
These three team members work together and with you to help you navigate buying and selling. These experts also know how to help set up contract clauses to ensure the plan you’ve created based on the market (buy first, sell first, or do both simultaneously) goes smoothly.
Don’t Forget Contract Clauses
Contract clauses are crucial to reducing the stress of buying and selling a home at the same time. Common contract clauses include a statement that the purchase of your new home is contingent on the sale of your other property, a clause that states the purchase of your new house will be held for a certain amount of time (usually 60 days) while your other home sells, or a rent-back arrangement that allows you to stay in your new home for approx 90 days while paying rent to the new owners.
All three of these clause options are viable and your expert real estate team can recommend which clause will protect you best, based on the market and your circumstances. If for some reason, these contract clauses don’t fit your situation, your expert Utah real estate agents can recommend a lender to discuss a bridge/HELOC loan. This type of loan uses your old home’s equity to help pay for your new home and the loan is repaid quickly with the sale of your house.
To Buy and Sell at the Same Time
With these three tips, you’ll be well on your way to smoothly navigate one of life’s biggest moments, buying a home. Not sure the state of the market, what clause to add to your contract, or who to reach out to for a specialized team of experts? We’re those experts and we can help. Start by getting a free home value report and contact us today.