Buying a New Home While Selling
The real estate market is a hot topic, and continues to be even as it levels out a little. Sellers are excited to get their home listed to take advantage of this sellers market, but then they find themselves on the buyer's side as they find a new home. Buying a home while selling your home can be tricky, join me as we talk about a few ideas to make the process as smooth as possible. Ideally, we would like to have the closing of your new home take place after you have sold your current home but that is not always possible. No fear, I am here as your local Tallahassee Realtor to share a few suggestions on how to coordinate both closing dates as seamlessly as possible. Let’s dive right into it!
Before entering into a listing agreement with your realtor, be sure to talk through your plans for your next home. Ask your real estate agent to allow you enough time to find the right buyer for your home while you also allow yourself time to find where you will move. The agent you choose to list your home is going to be your valuable real estate resource and they will be able to guide the transaction on your behalf.
Also, make sure your home is show ready! Begin packing items you are not going to need, seasonal decorations, and personal belongings. It is helpful for potential buyers to be able to picture themselves in your home and by removing your personal items they will easily be able to picture their belongings in the space. I like to recommend keeping only half of the decorations on tables, bookshelves, and in cabinets. This will allow potential buyers to see the space as airy and open, but will also keep it from looking cluttered.
If you have received an offer on your home but have yet to find a place to go (whether temporary or to purchase), work with your local Realtor to negotiate an extended closing into the offer. Another option would be to have your real estate agent negotiate a “lease back” with the new homeowners. In a lease back situation, you would be able to close on your home and then enter into a temporary leasing agreement with the new homeowners. This would allow you to stay in the home for a temporary period until you find a new home.
Say you have found the home you would like to purchase, but you have not received an offer on your current home. No worries, just ask your realtor to negotiate an offer that is contingent on the sale of your current home. What this means is, you are asking to purchase this new home but only once you have sold (and closed) on your current home. This can save your EMD (remember what EMD stands for by checking out my post about being financially prepared here) as well as release you from the contract without (or lessening) consequences.
The costs of selling a home while also planning to buy a new home can be tough (remember we talked about how much money you will need to purchase including how to calculate costs of buying here). Financially, it may be ideal for you to sell your current home before purchasing a new one. If you find yourself trying to balance between the two, I would definitely try to negotiate a “lease back” to allow you time to close on a new place. Although, keep in mind, the terms are typically for a short period and the new homeowners would need to be in a position they are willing to hold off on moving into their new home.
As with any real estate transaction, the key is always communication. Having a real estate agent with strong communication skills is going to benefit you greatly, regardless of which side of the transaction you were on. Especially with a tricky transaction of you selling your home, and purchasing a new one simultaneously, communication will be key!
As you prepare to move from one home to another, remember the first thing you should always do is look at finances. Will you be able to purchase the home without selling your current home first? Will you need to sell and close, make arrangements for temporary housing before you are able to write an offer on a new home? Consider these conversations with your real estate agent. Our market in Tallahassee, Florida is still very hot, inventory is still low, and buyers are still struggling to find the perfect home. Be prepared as soon as you list your home with what your plans are for moving, should your home go under contract sooner than you would like.