This ARTICLE On How To Buy And Sell A House At The Same Time Was PUBLISHED On August 22nd, 2019
Current homeowners, who have decided to purchase another home and sell a current home, what should be done? Is there a way on How To Buy And Sell A House At The Same Time? What are tips on How To Buy And Sell A House At The Same Time and qualifying for mortgage?
In this article, we will cover and discuss on How To Buy And Sell A House At The Same Time.
Steps On How To Buy And Sell A House At The Same Time
There are instances where home buyers need to sell and buy a home at the same time:
- Sell home first?
- Buy a home first?
- If deciding selling home first, homeowners will definitely under pressure to purchase another home in a short period of time
A home purchase can take time:
- A home purchase can take one day or several months if not up to a year or more
- Homebuyers may not like the current inventory of homes in the market
- It can be a buyer’s market where it is a hot market
- Homes that just list can often be selling over list price
- Ultimately, if buyers under pressure in buying a home in a certain period of time may end up compromising for less of a home that suits them
- Also, with pressure, buyers may end overpaying for the home
- Or do not end up buying a home is the perfect home
May have to spend unexpected funds for moving and storage and living expenses until finding the perfect home or end up finding the home that suits needs.
How Can You Buy And Sell A Home At The Same Time?
How To Buy And Sell A House At The Same Time can be done:
In the event, if homeowners want to buy first before selling the home they will be under pressure to sell the old home:
- To get top price for home homeowners may need time
- But if under time pressure, they will most likely take a lower offer than otherwise, they could have gotten
- Another issue folks may have is coming up with the down payment for a home purchase if counting on the equity of the current home
- Even with the down payment for new home purchase and current home does not sell, there are issues home buyers need to consider
- First, can income qualify for two mortgages at the same time?
- Even if home buyers qualify for two mortgages at the same time, paying for two mortgages can be quite costly
It’s not just the mortgage payments they need to think about.
Expenses With Having Two Homes
There are other expenses such as the following:
- homeowners association dues if applicable
- other costs of keeping a vacant home
How To Buy And Sell A House At The Same Time And Researching Housing Market
Once homeowners have decided to buy another home and sell a current home, here is how to buy and sell a home at the same time.
- First and foremost, they should consult with a realtor or several realtors
- Have realtors do research on housing prices in the area
- Whether homeowners are buying first or selling first, they should analyze the housing prices
- They should also carefully analyze and review the market time the home is on the market before it sells
- Check the inventory and competition out there
- Should get a tentative ballpark idea what current home will sell for
- What is the price range of homes they are interested
- Find out whether it is a buyers market or seller’s market
- If both a home seller and home buyer they will be in a situation where they will need to protect themselves in the weaker side of the market
Whether it is buyers or seller’s market while taking advantage of the stronger side of the market.
If The Current Market Is The Buyer’s Market
If the market is weak, it is called the buyer’s market where it favors home buyers than sellers.
- On a buyer’s market, there are more inventory of homes than there is demand
- A buyer is in a strong situation
- The buyer has many homes to pick from with little competition
- Sellers are willing to negotiate more
- Unfortunately, as a seller of the current home, the odds are not in their favor for a quick sale
- In situations like these may want to start shopping for purchase and see if the seller will accept a contingency
- Contingency on purchase and closing will be contingent on selling home
- A seller who had their home listed for quite some time and where it is a buyer’s market may accept this contingency
- On a seller’s market, very little sellers will allow a contingency on buyers selling their homes
- The seller needs to be convinced current home will sell quickly
The home may be in demand because it is not one of those odd homes or white elephants where it can sit on the market for many months.
Contact Mortgage Lender
Contact a mortgage lender and get a full financial analysis. See what you qualify for and see if you can qualify for two mortgages. If cannot qualify for two mortgages, discuss with a loan officer on creative ways on How To Buy And Sell A House At The Same Time and qualify for a mortgage. May need to sell a current home first or do a simultaneous closing on the home purchase and home sale at the same time. If income can qualify for both mortgages, then buyers have the luxury of buying a home first and taking their time in selling the current home to maximize top dollar.