Are You Selling a Home To Buy Another One?
Unlike purchasing your first home, selling to purchase another home introduces a number of new elements that can complicate the process. It is very important to consider these elements prior to listing your home for sale. Not only is financing important to consider, but the timing of selling your current home at exactly the right time to avoid the risk of owning two homes to avoid two mortgages can be challenging. Or possibly even worse, selling your existing home and having no where to live in the gap between the two closings.
Six Defense Strategies To Avoid Real Estate Nightmares
In this report we will discuss the 6 most common mistakes people make when selling their existing home to move to another home. Knowing these common mistakes will help you make informed decisions before listing you home for sale.
1. Bigger Eyes than your Wallet
Most of us dream of that bigger, newer, and more updated home, one with more room, bigger back yard, or something that we believe will improve our lifestyle. The problem is that usually our eyes and heart are bigger then our bank account. You either find a home online, or drive by one that you fall in love with only to find out it is already sold or it is out of your price range. Most homeowners get caught in this hit and miss method of house hunting when there is a much easier way to go about the process. Find out if your agent offers a VIP Home Hunter program or Buyer Profile System, which takes the guesswork away and puts you in the home of your dreams. This type of program will match your exact criteria with all available homes, and it will keep you updated with the latest information. A program like this helps you keep your heart in check with your bank account and move into the home of your dreams.
2. Failing to Make the Improvements that Matter
If you want to get the absolute best price for your existing home you’re selling, there are certainly things you can do to enhance it in a buyers eyes. These fix ups don’t necessarily have to be expensive but can often come back to you ten-fold when you sell. A great Realtor can help you determine the most bang for the dollar to net you the most for your home. It is very important to have these improvements completed prior to listing your home for sale. Even if you do not have the necessary funds, investigate an equity loan you can repay at closing.
3. Not Selling First
You should plan to sell before you buy. This will help you at the negotiating table, as you wont feel pressured to accept a low offer because you have a deadline on the home you are purchasing. If you have already sold your home, you will be in a better negotiating position on your purchase with no strings attached. In the event you have sold your home prior to locating a new one, you may want to consider putting a contingency in the contract giving you a little time to find the home of your choice. In the event your home is not selling and the market is slow you may consider renting your existing home and putting it up for sale at a later date, especially if it is a smaller starter type home or one that is easily rented. Even better is to find an agent that will guarantee the sale of your present home. See point #5
4. Failing to Get Pre-Approved For Your Next Mortgage
Getting pre-approved is a simple process and does not cost or obligate you to anything. Pre-approval gives you significant advantage when you put an offer on a home. It communicates to the seller you have what it takes to purchase their home and is the next best thing to a cash offer. It also gives you confidence in what you can afford as you already have the go ahead from your lender. In a multiple offer situation this can be the one thing that makes your offer stand out from the other offer. Don’t fail to take this important step.
5. Getting Caught in the “Real Estate Catch 22”
Your biggest dilemma when buying and selling is deciding what to do first. Point number 3 tells you to sell first. However, there are ways to eliminate this problem altogether. There are some Real Estate agents that offer a Guaranteed sale program. Essentially, this program guarantees the sale of you existing home prior to taking possession of your next home. If you find a home to purchase and you have not sold your existing home yet, the agent will purchase your home so you are able to make the move stress free. 6. Failing to communicate and coordinate closings With a minimum of two major transactions to coordinate together with all of the people involved, communication and coordination is critically important. You have mortgage experts, appraisers, loan officers, underwriters, title company representatives, home inspectors, pest inspectors, all working with in a timeline. It is important to work closely with your realtor to keep everyone on track and on schedule to insure a smooth problem free transaction and closing.
6. Failing to communicate and coordinate closings
With a minimum of two major transactions to coordinate together with all of the people involved, communication and coordination is critically important. You have mortgage experts, appraisers, loan officers, underwriters, title company representatives, home inspectors, pest inspectors, all working with in a timeline. It is important to work closely with your realtor to keep everyone on track and on schedule to insure a smooth problem free transaction and closing.