When it comes time to move-up, there is so much more to real estate than just picking the new house when you need to sell first in order to buy the new one. Today we're talking about the things you need to keep in mind if you're trying to sell a house and buy a new one.
Due to different uncertain or unavoidable situations, homeowners are concerned over selling and buying a house at the same time. And, rightfully so. Because there are many technicalities a seller is unaware of which only become exacerbated when trying to buy, too. The buying and selling process is not as simple as it seems because to pull off both, concurrently, is like a seamstress threading a needle while skydiving!
This whole process of selling and buying a house at the same time depends mainly on which market the homeowner is dealing with. If we talk about the seller market, this means if that happens to be a shortage in housing so we can get more potential buyers than homes, and in a buyer’s market is usually a surplus of homes and fewer buyers.
Talking about San Diego county, a seller market with a low inventory, lets the buyer set a higher price for the house. This leads the real estate agent to profess that your home will have a higher price in the future. This allows the homeowner to sell their home, but the issue comes in when you sell your house at a high price, but as the market has a low inventory, it might be difficult for the homeowner to find a new home. There are some steps that the homeowner has to follow is to discuss how to buy his/her new home; the real estate agent, however, gives a price range to the homeowner to see at which price they will likely to fall into.
There are many ways that can be discussed in selling and buying a house at the same time.
In this process, the homeowner puts the house in the market for the buyers to buy only if the homeowner is willing to purchase a new one. However, it is to make a contract on the existing home, and then you go out and find a new home. Yet, in this approach, the seller can continue offering other potential buyers, and if the homeowner gets a suitable buyer, they can remove the contingency or go for the sale. But in this way, the number of potential buyers who want to purchase your home will eventually slim down. The remaining buyers of your home will pay you less amount, and when the homeowner goes over to buy the new home, this might happen that he/she has to pay the price higher than he sold his house for.
This method makes a more selling rate and a less buying rate. The homeowner will try to sell his home for the highest amount possible, but this process is stressful as buyers will come, and everything will be a little problematic for the seller.
The second and foremost thing is to discuss the rent-back agreement, for example, a 60 days plan in which the buyer of your house will stay in his old home after buying it and along with that, the seller can live in his house on rent for 60 days so the homeowner can get enough time to buy a new house. This makes it feasible for the seller to stay at his own home rather than shift to another place or a hotel. This makes it turning only for once.
The fourth option is that the homeowner moves out first and then allows the real estate agents to sell their home at a reasonable price, which lets the owner find a new house at an affordable price in the market and reduces the stress of people coming and looking over the place.
The best way of selling and buying a house at the same time is to buy a house first and then sell over the old home; this considers the ideal option with the possibility of the highest turnover by selling the house. The only drawback of this option is that it can only be available by the rich people or those who have excess money to buy n new house.
However, in the last option, if the homeowner cannot afford to buy the home, then they can get a loan with a very low down payment or either renting their home and move out. It can also be possible if the owner, through the real estate agent, can get an FHA loan with a 3.5 percent rate through the payment of your current home and then quickly buy the new home when the renting agreement ends.
Before selling his/her home, the homeowner needs to focus on planning; without it will become difficult for the homeowner to move out and find another place for himself. They can hire a listing agent who will help put the house in MLS but not by representing the seller. Or the seller will also help in listing with different real estate agents. However, this kind of process is scarce.
The homeowner should work on predicted variables, meaning the seller’s actual goals and thoughts; what he/she wants can’t go unplanned. If the seller couldn’t plan before selling his/her home, it might be possible that they have to find a place on rent to buy the new house.
“It’s a lot technically, it’s a lot logistically, and I think the thing that it’s mostly a lot of is emotional,” said Jesse, real estate advisor. Selling and buying a house at the same time is an emotional process, and because of this, reason seller makes stupid mistakes such as trying to sell their home at a price higher than its actual amount, which might not attract the potential buyers. Moreover, the homeowner has to face rejections from the buyer’s agents, which is a little upsetting. Having the agent siding with you can put all the negative feedback and mend them into a positive one to stay positive on selling their house.
November 4, 2019