Buying and selling a home at the same time sounds like a stressful situation, but it doesn’t have to be. It all has to do with planning and perspective. First, even though it may seem as if you have too many pins juggling in the air, realize that the situation occurs often, and there are proven ways to handle it with ease. In just a few months, you will look back and pat yourself on the back for handling it so well.
Information Is Power and Key in Handling Whatever Comes Your Way
The more you know about your situation, the market, and the tax ramifications of the sale and purchase, along with the unique laws and taxes of your area, the better you will handle any roadblocks or bumps in the road that may come up. Study the market and the neighborhood you’re planning to move into. Find out what other homes are selling for and how long the sales usually take. Do you expect any sudden surprises at closing on either home? You should. But if you learn as much as possible beforehand, you can likely deal with each situation better as it arises.
If at All Possible, Sell First
Obviously, the stress of buying and selling a home at the same time can be avoided if you first sell your present home. But even if you don’t actually sell it, but, instead, put your home on the market earlier, it’s beneficial for multiple reasons. First, it will give you an accurate look at the market. It is much better to be disappointed by a lower selling price early and work that into your plans than to be shocked by it after the papers have already been signed on a new place. Attempting to sell early will also put you in contact with a Realtor early on, which will bring you more information and begin a relationship that will be vital to the success of your endeavor.
You Can Add Contingencies
It is possible to request, in writing, things to make the move easier on you as a seller:
- You can add the contingency that your home must sell before you buy.
- You may be able to negotiate for a longer time in escrow to give you time to purchase after the sale.
Contingencies can sometimes throw a buyer off, but they are possible.
Keep an Eye on Your Credit Score
Throughout the entire process, keep your credit score in check. A dip in your score at the wrong time can mean your interest rates go up, which is difficult to undo. Some mortgage companies will be harder to get approval from when you already have a mortgage, so that should be taken into consideration as well. Building credit is key in obtaining a home loan, so don’t overlook it once the process has begun.
Go in knowing you will encounter surprises, and keep a clear mind when making choices. Remember that it’s okay to take a few hours or even a day when you’re trying to make a difficult decision.
Jodi Bakst is recognized as one of the top listing agents in the Chapel Hill, Durham and surrounding area. She is known for providing superior customer service and making use of the most advanced marketing systems and technologies that showcase her listings and get them sold