A common thread in today’s real estate market is elevated home equity. In this scenario, many homeowners can sell their property and leverage their equity to purchase a home that better fits their family’s needs.
Homeowners should be prepared for a curveball or two when selling and buying a home simultaneously. For example, if a buyer backs out of the deal while you’re preparing to make an offer on another home, a mini real estate reset could be in order. It’s not a time to panic or overreact, however. The reality is that extra coordination, preparedness and maybe a little luck will be needed to successfully sell and buy a home of your dreams in one big swoop. (And a good loan officer and real estate agent team.)
The good news is that the common missteps some might take during buying and selling a home can be sidestepped.
Even if you have a lot of equity in your home, it’s important to get preapproved for a loan first. Doing so gives the homeowners a clear roadmap on how much home they can afford. This avoids coming into the process with an inflated budget.
With a balanced approach, folks can avoid the headaches of having to reset their home search by getting pre-approved on a new loan first.
Two different real estate agents
Being on the same page with your real estate team is crucial to a successful homebuying and selling process. Homeowners can simplify an already complicated dual process by working with the right team. This gives the real estate agent and the team full control of the process as they will know where things stand on the buying and selling fronts.
Unless you’re moving out of state, there’s little benefit to employing the services of separate real estate teams.
Prep home too late
As exciting as it is to both sell and buy a home, homeowners should allow for enough time to prep their home before showcasing it online and in person to potential buyers. From touch-up paint, deep cleaning, carpet shampooing, minor repairs and window washing, it’s important to get to an early start on tidying up.
It’s common to get lost in the home search, while putting off the necessary home prep work. If you find your next dream home and begin the contract process first, you’ll be deprived of the bandwidth to handle the necessary home prep tasks.
Proceed without backup plan
Selling and buying real estate can mean double trouble. Despite your best efforts, one wrong move on either side can derail your plans.
That’s why it’s important to keep your emergency fund stocked in case you need more time to find a new buyer for your home. Real estate delays to the purchase of your new home, for example, might require a hotel stay or a short-term rental for any extended delays.
Not enough cushion
The market is always changing. Expectations can go unfulfilled. With this mentality in place, homeowners can create for themselves some cushion just in case the sales price falls short of their projections.
If you’re planning to use the proceeds of the home sale for the down payment, it’ll be important to plan on a range on the return to guide your budget and down payment plan.
If you need any help with the sell and purchase process, contact us today!