In today’s market, it can be hard enough to just sell or buy a home. There’s a lot to think about if you’re trying to do both at once. Plan ahead, keep detailed notes, and make sure you’re familiar with all the options before you start. Here are a few tips to help you ensure that the process goes as smoothly as possible.
Keep Track Of Information
Yes, you can enter notes on your smartphone, tablet, or laptop, but chances are you’ll have plenty of paperwork to go around as well. Have a dedicated binder or folder for your buying and selling information. Document every meeting you have; who, where, why, when and what was discussed. It will keep you from frantically searching your memory at the last minute.
Meet With Your Real Estate Agent
A real estate agent in your area can give you a good idea of how soon you can expect your home to sell. They can help you learn what you need to do to sell your home faster, and what price it will likely bring. You’ll also learn what homes are available in your area, and what time gap you can expect between your sale and the purchase of your new home. Consult with your real estate agent as early as you can in the process – up to a year ahead of your planned sale.
Talk To Your Mortgage Broker
Your mortgage broker is another entity you should speak to early on. Ask what you’ll likely get on your sale, what you qualify to purchase, and what down payment you’ll need for your new home. Knowing what you can afford ahead of time will assist you in your search.
Know Your Moving Options
It’s extremely difficult to time the purchase of one home with the sale of another. Ask for a rent-back or long close on the sale of your home, so you can continue to live there for a month or two if your purchase takes longer than planned. By the same token, you might be able to request an early move-in date for your new home. Expect to sign a waiver essentially stating that whatever goes wrong before the close is on you if this option is granted, and that the owner won’t be liable for your possessions.
Have A Backup Plan
Plan for delays, and you’ll be prepared if and when they occur. Build up cash reserves that will allow you to pay on two mortgages for a few months if necessary. Also, research suite hotels or vacation rentals in the area, just in case you have to move out before you’re ready for it.
If you’re buying and selling a home simultaneously, preparation is the key. Be prepared to document meetings and phone calls, and keep financial and closing documents well organized. Work with your real estate agent and mortgage broker to develop a plan that works for you. When you’re aware of your options and plan for possible difficulties, your relocation will go much more smoothly.
