A home purchase or sale can be a laborious process. Combining the two at once increases the complexity significantly. If you are buying and selling a home simultaneously, the seller and the buyer must negotiate in a competitive market. While the seller’s market will benefit you, the buyers’ market will present a few difficulties.
There is more urgency and competition in the market because there are fewer properties for sale than buyers.
However, there are indications that the housing market is slowing down. Here are a few tips for buying and selling a house simultaneously.
1. List Your Necessities, Non-Negotiables, and Wants
Before starting the process, you must be clear about what you want, including your essentials and non-negotiables. Be sure to write them down, as there may be instances where you need to make a few concessions.
For example, you might need the proceeds from the sale of your house to put a down payment on a new house. In this situation, you should decide the lowest price you are willing to sell the house in advance. You might also set a sell-buy deadline for the day the new academic year begins.
This becomes even more challenging if you own buy-to-let properties in other countries. Before you put the property on the market, research the local market forecasts (this is an example of such a forecast for properties in Brisbane) to get an idea of property values in different places.
Be specific about your needs regarding the new house you want to purchase. The specifics may include no remodelling necessary in a great school district or at least four bathrooms. In addition, you need to consider the highest price you can afford if your current property sells for lower than planned.
Setting these kinds of criteria and communicating them to your real estate agent may help you make decisions faster. They reduce your chances of later suffering from buyer’s or seller’s remorse. It is easier to buy and sell a house at the same time when you know exactly what you want.
2. Create a Timeline
Be specific about what must occur when it needs to happen. You must also be clear about the dates you can afford to be flexible with. Everyone will stay on target if they have a general schedule of when specific tasks need to be completed.
For example, consider how long it will take to replace the garage door on the current house or what needs to happen first if you have to move into your new house in the new school district by a specific date.
How much time do you have to find a new place to live? Writing everything down on paper or in task management software will make it feel real and could keep you on track.
3. Speak With a Mortgage Broker Before Listing the House
An experienced local mortgage broker can work with you and your real estate agent to establish how much you’ll collect from your house sale before you begin your plans to sell and buy a home. They’ll also assist you in determining how much you need for the buy and what you’re eligible for.
A mortgage broker can assist you in figuring out whether and how much the sale will impact your credit. They can also advise on buying a house or selling one you already own. Therefore, you would be smart to add a mortgage broker to your team as soon as possible.
Buying a new home while selling your old one means juggling a lot of tasks at once. You may have to deal with various organisations and stakeholders in a limited amount of time. In addition, everything has to go according to plan. Take advantage of the above tips to make your experience easier.
