Buying a new home while trying to sell your old home can seem complicated, but I can promise you that there is always a solution that will make you feel comfortable about diving into this journey.
With a little guidance from an experienced real estate professional, there are definitely a few things that you can do to set yourself up for success.
The very first step should involve speaking with a lender to determine if you “can” buy a new home without having to sell your current home. Notice that I put “can” in quotations. I know you probably don’t want to handle two mortgages at once, but finding out if you “can” will be a game changer for those wanting to buy and sell a home at the same time.
If you “can”, this gives you more buying power since you will not have to make a contingent offer on your new home. Aka – your offer will look more attractive to a seller since there will be no contingency attached to your offer. And this will allow you to slowly move-in to your new home without stressing about moving twice or moving most of your stuff into storage. This option also gives you the freedom to take your time searching for what will probably be your long-term home.
Once you have closed on your new home, you can go ahead and get your current home listed. Since your new mortgage payment skips a month, you won’t have to worry about paying both mortgages “IF” your current home goes pending quickly.
If you are unable to secure two loans at the same time, then we need to prepare your home to list. And the reason this is the next step is because we can’t make an offer that is contingent until your home is actually on the market.
Depending on the market, you might have to be ready to jump. And once your house goes pending, you will be in an even better position to make an attractive offer on your new house.
At the pre-listing appointment you can expect to go over comparable sales at that specific time, how fast homes are selling in your neighborhood, and what steps you need to take to get your house ready for showings.
You’ll want to have a plan A, B & C in place – because let’s face it, the real estate market is extremely unpredictable.
Yes, the perfect scenario would be to close on both homes on the same day. But because contingent offers aren’t always the most attractive in a seller’s market, I would highly recommend finding temporary housing for a few months or think about asking the buyer for your new home to sign a rent back agreement for a certain time period.
Also, keep in mind that you will need to be out of your current house completely before your current home’s closing. So, finding a place to store most of your belongings (even if it’s for a week) is also encouraged.
On the other hand, if you are facing a buyer’s market and you are confident that your home will go pending quickly, you can request that the buyer give you a longer escrow period.
I like to set up expectations realistically for my clients from the very beginning.
I always highly suggest to go over all of your numbers with your lender before we even begin previewing homes. You should feel comfortable with your expected monthly note, down payment, & closing cost. I encourage this conversation so that you are prepared and can act quickly when you are ready to make an offer.
And speaking of the offer – I will discuss several strategies to consider when you decide to pull the trigger. Ultimately, the offer is determined by the buyer, but I will do my best to guide you with strategic options.
Finally! Now that you are fully prepared and have your plan in place, we can begin the search for your dream home.
At this time you will share listings that interest you and I will share listings with you that fit your specific criteria.
I take a modern approach when networking for your new home. Over the years, I have discovered innovative processes that have worked. And I’m always seeking other creative ways to find solutions for my buyer’s home search.
But patience is key in any market. In the end, what is meant to be will be and you will be so incredibly happy in your new home.
Celina is from Cut Off, Louisiana, and has been an agent with District South since 2018.
More about Celina Michel