Selling One Buying Another
The ideal situation is to sell your old Austin home and purchase your new home on the exact same day! However, since situations don't always happen perfectly, it's a good idea to plan ahead for the worst, and hope for the best!
Time it right
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Spring & Summer are the best times of the year for you to sell your home quickly, and you will want to take into account the season of the year when you decide to put your home on the market in order to move into a new home. If you can't make the closing dates coincide, a gap is usually better financially than two mortgages. It's usually easier & cheaper to find a temporary place to live rather than pay on two mortgages.
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Selling First
- Choosing to sell before buying a new home will minimize financial hazards. If you need to find temporary housing, it's usually cheaper than two house payments.
- Make sure and get a Comparative Market Analysis (CMA) from a trusted Realtor immediately. This way, you will know how selling your home will affect how much you can buy on your new home. You will be able to plan for the future & budget much more effectively.
- Make sure and speak with a lender and get your pre-approval on your new loan.
- Don't put an offer on a new home until most of the contingencies have been met on your current home. The idea is to avoid two mortgage payments!
- If you've found a seller for your current property, but you haven't found a new home to move into, negotiate a long closing, or a lease back. This way, you will have more time to find the perfect new home. Worst case scenario, you can find temporary housing.
Buying First
It happens sometimes. You're only considering buying, and then you find the perfect home. Now you need to sell your old property – and fast. Here's how you can make sure that everything works in your favor:
- Negotiate a longer close on the new home you've found. You can also put in a contingency contract on the new home – you're only bound to buy the home after your home sells.
- Schedule the close date of the home you're in before the close date of your new house. Temporary housing is usually a better option than 2 mortgages.
- Look at the asking price of your current home – make sure you're being realistic.
- After you receive an acceptable offer, look very closely at the potential buyers' credit. You want to make sure that you won't see any surprises that might delay closing – especially due to funding.
Same Market or Across Country
Typically, if you've decided to buy & sell in the same market, you'll be able to negotiate closing dates that are ideal for you. However, when you're looking at a cross country move, it can be a lot harder. Your Realtor will really come in handy. The closing documents can be faxed, emailed, or sent by overnight courier & it should help to reduce stress. You might end up renting out your current home, or renting a home in the new market – or you may want to consider a bridge loan. Make sure and have a reputable professional on your side in your new market and you will reduce your stress immensely.
Show Me the Money
Make sure you know exactly where you stand financially. Having reserves in the bank is always helpful, and even more so when you're purchasing a new home. Two to three months of reserves is always recommended, but if you don't have it, you can explore the option of a bridge loan to achieve your goals. Most lenders are more apt to approve the loan if it's for purchasing your home. Consider offers where the buyer is flexible about the move-in date, this will probably save you some money in the long run. |
