Real estate deals can be quite confusing, but when you need to be a buyer and a seller, things get especially complex. It can be difficult to determine the timing of the operation so that by selling your house you will be able to move to a new one without a space of time where you end up without a place to live. Securing financing can also be difficult if you need the money from the sale of one house to finance the purchase of another. Fortunately, with some simple tips, it is not that difficult to buy a house and sell another.
Put your house for sale. This should usually be the first step, since you will have to know that you can sell your house before buying a new one. Otherwise, you may get stuck with two mortgage payments, which can cause serious financial problems for most families.
Start looking for a new house and investigate options for temporary housing. In case the time does not work, you may need to know where you can move temporarily after your house is sold while you buy your new home. Look for apartments that offer rent from month to month or consider staying with a family member or a friend if you end up having a time gap.
Try to make all contingent contracts. This means that if you receive an offer on your house, you can try to get the buyer to agree that the sale will be pending while looking for a new home. Alternatively, if you find a house that you want to buy, you can make an offer in that house that depends on selling your own. This is not always possible. In a buyer’s market, for example, you may have to accept the terms of a buyer and sell your house when the offer is made, entering temporary housing. Also, in a vendor market, where there is a high demand for houses, it can be difficult to get the seller to accept a contingent offer. However, it never hurts to ask. You can set the contingency period of up to 30 days, 60 days or up to 90 days,
A secure financial bridge is necessary. If you find another house you want to buy, you may need money from your existing house to buy it. Many banks and lenders offer a bridge loan, which is a low interest loan – usually 1 or 2 percent – that allows you to borrow money for the down payment on the new home and pay again when you are paid for the old house. You can also consider using a home equity line of credit to make an initial payment on your new home, if you can qualify.
Try to coordinate the closing dates. When you make an offer for a house or sell yours, you will receive a deadline in which the operation is performed. Then, when you take the next step – buying or selling, what you did not do first – try to get the other party to the agreement to have the same closing date as your original house. You may have to make some small concessions, so it’s better to evaluate if it’s worth it. For example, the buyer may agree to a later closing date for your house if you have to wait to move into your new home, but you can ask for a small reduction in the price. If it would cost you $ 500 to move into temporary housing, it may be worth accepting the small reduction. Some buyers will also be willing to rent your own home for a limited time,