There are several reasons why you might decide to sell your house. You could be upgrading or downgrading. That means the sale of your current home will finance the purchase of the new one. The decision to sell or buy a house is never an easy one. There are factors to consider like the general finances, the real estate climate, and social amenities. This can be overwhelming since you’re looking to sell and buy at the same time with little disruptions. In order to sell house fast and buy a new one, you need to be prepared for the whole process. Here are some tips that could come in handy if you ever find yourself in such a predicament.
Assess Your Current Situation
Why are you moving and how urgent is it? You could be a newly married couple or parting ways and you need to liquidate your assets before you start a new life. There is also a chance you’ve gotten your dream job but you will have to move to another city. This will require that you sell your current home as you search for a new one simultaneously. Your reason could be deadline sensitive and you don’t have time to wait for the conventional way of selling a home.
Selling The Home
Experts recommend selling your first home first before you can start hunting for a new one. You will need to do the necessary repairs and touch-ups before you can decide to put it on the market. You don’t have to spend a fortune on repairs. The interior of the house can be painted to a neutral tone so as not scare potential buyers will bold colors. The interior spaces will need to be decluttered so that they look presentable when showing the house to potential buyers.
Your house will then be put on the market and the agent will start receiving offers. Once you’ve negotiated with the right person and agreed on a price, you can close the sale. You can also agree with the new owner on the rent-back period as you look for a new home. This shouldn’t be an issue unless the new owner is in the same dilemma as yours. The other alternative would be to move into a rental as you continue to shop around for houses. Experts from ManageCentralFloridaProperty.com suggest you find an affordable rental and spend some time looking for the right house. Selling first is seen as a good decision if you have the time to wait for the right home to show in the market. Making a hurried decision could be costly when buying a new home as you will be spending a good amount of your life in that house.
Buying A New House Fist
Buying a new house fast could ease the burden of having to look for a house when you’ve sold your current one. It could be the best alternative if you’re working with a deadline. You might be moving to a new city and don’t have the time to wait for your house to be sold. This option could also leave you with serious financial challenges especially if you’re not adequately prepared. You will have to put in a down payment which could have a strain on the finances especially if you’re paying another mortgage.
A solution would be to get a bridge loan to manage the transitioning to a new house as you wait for the old one to be sold. It could take a few weeks for the loan to close and that is why it is important that you plan in advance if you’re caught in such a dilemma. The other options you could consider include:
Renting out your old home: Getting a tenant is far much easier than getting a buyer. It could take months before you get a potential buyer. The rental income can help in covering mortgage payments and you can get a profit when you decide to put the house on the market.
You can put an offer which will be contingent on the selling of your current home. Even though this will protect you from ending up with two mortgages, it might be costly in the long run. There are some fees that you will need to pay which may not augur well with your financial situation. There are sellers who will also not accept offers with contingent terms. The strategy that you choose will depend on a couple of factors. It is important that you assess your situation before making the decision.