Tips On How To Buy And Sell A House At The Same Time
If you are a curent homeowner and decided to purchase another home and sell your current home, what should you do? Sell your home first? Buy a home first? If you decide to sell your home first, you 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. Home buyers may not like the current inventory of homes in the market and it can be a buyer’s market where it is a hot market and homes that just list are selling over list price. Ultimately, if you are under pressure in buying a home in a certain period of time, you may end up compromising for less of a home that suit your needs or a home that you like. Also, with pressure buying, you may end up overpaying for the home or if you do not end up buying a home that you like but sold your home, you may have to spend unexpected funds for moving and storage and living expenses until you end up finding the home that suits your needs. In the event if you want to buy first before you sell your home, you will be under pressure to sell your old home. To get top price for your home, you may need time but if you are under time pressure, you will most likely take a lower offer than otherwise you could have. Another issue may folks have is coming up with the down payment for your home purchase if you are counting on the equity of your current home. Even if you have the down payment for your new home purchase and your current home does not sell, there are issues you need to consider. First, can your income qualify for two mortgages at the same time? Even if you qualify for two mortgages at the same time, paying for two mortgages can be quite costly. Its not just the mortgage payments you need to think about. You have taxes, insurance, maintenance, utilities, security, homeowners association dues if applicable, and other costs of keeping a vacant home.
Research Housing Market In Your Area
Once you have decided to buy another home and sell your current home, here is how to buy and sell a home at the same time. First and foremost, you should consult with a realtor or several realtors to research the housing prices in your area. Whether you are buying first or selling first, you should analyze the housing prices, the market time the home is on the market before it sells, and the inventory and competition out there. You should get a tentative ball park idea what your home will sell for and what the home you are interested in is going for. Find out whether it is a buyers market or sellers market. If you are both a home seller and home buyer, you will be in a situation where you will need to protect yourself in the weaker side of the market, whether it is buyers or sellers 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 home sellers. On a buyer’s market, there are more inventory of homes than there is demand and a home buyer is in a strong situation where the buyer has many homes to pick from with little competition and home sellers are willing to negotiate more. Unfortunately, as a home seller of your current home, the odds are not in your favor for a quick sale. In situations like these, you may want to start shopping for your home purchase and see if the home seller will accept a contingency where your home purchase and closing will be contingent on you selling your home. A home seller who had their home listed for quite some time and where it is a buyer’s market may accept this contingency. On a sellers market, very little home sellers will allow a contingecy. The home seller needs to be convinced that your current home will sell quickly and 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 and see what you qualify for and see if you can qualify for two mortgages. If you cannot qualify for two mortgages, you know that you need to sell your home first or do a simultaneous closing on your home purchase and home sale at the same time. If your income can qualify for both mortgages, then you have the luxury of buying your home first and taking your time in selling your current home to maximize top dollar.