There are plenty of situations you might find yourself in where it will be necessary for you to sell your current home and purchase a new one at the same time. For instance, maybe you found a job in another city that starts quite soon. On the other hand, maybe your elderly parent unexpectedly has to move in with you and you need a bigger place. Whatever your circumstances may be, it’ll be good for you to get some tips when it comes to selling and purchasing a home simultaneously, so take note.
Get an estimation of your current home’s value
To get started, you first need to know what your current home is worth. Knowing how much money you might get for it will make it a lot easier to look for a new place. You can begin by using some online valuation tools that can help you get a rough estimate and then call a couple of real estate agents to check out the best available properties. They will explain the current market situation and whether there is a demand for such homes. Contacting more than one agency will ensure you get a clearer picture of what you are dealing with.
Start your search for the new property
When you have a clearer understanding of the amount of money you can get for your current property, the search for your new home can commence. Seeing as how you already contacted real estate agents, you can use their help in this endeavor. One important aspect of looking for a new property you cannot neglect is listing all your needs and wishes for this home. Research the neighborhood and the nearby facilities, such as schools, hospitals, malls. How many rooms do you need? If there is an area that needs to be renovated, are you willing to do it? Do you have the funds for it? Or do you need a space you can move into immediately? Before you make any decisions, conducting an inspection is vital as then you will know how much money you’ll have to invest later on, so get experienced professionals to carry this out.
Understand your finances
Once you have an estimate for your current home and are aware of how much the homes on the market currently cost, you need to see what kind of budget you have at your disposal. Will the amount you get be enough to buy the new property? Can you cover the deposit for your new space? If not, you should look at the available home loan options and see whether you qualify for any of them. Furthermore, if you have a mortgage, talk to a broker to check whether it can be transferred to your new home and what other alternatives you have. Plus, you cannot forget about the other costs of closing the deal, such as stamp duty and similar administration fees.
Set contingencies in place
Seeing as how, generally speaking, selling and buying doesn’t happen on the same day, you should look into ways of protecting yourself. This can be done by negotiating contingencies. For instance, your contract can include a contingency that states that you must sell your home first before you make a purchase. Doing this might result in closing on both properties on the same day. However, you need to realize that there is a risk of the seller turning you down, especially if you’re dealing with a seller’s market. On the other hand, you can include a contingency which says that you must buy a new home before you sell your current one. In this case, you should understand that your buyers might find this odd and give up on the purchase. Although, if the housing supply is not huge, they might be willing to wait for you. Moreover, see whether you can extend the settlement, which could allow you to stay at your current place until the new one is finished (in case there are any renovations to be done).
Close the deals
Buying and selling a property includes a lot of paperwork, which can be especially overwhelming when you’re doing it concurrently. To make this easier on yourself, you should think about hiring a professional to help you out. For instance, conveyancing experts can draw up contracts, work out some contingencies and explain every stage of the process.
The most important thing to bear in mind is that this is often a long process, which can sometimes even take six months or more. That is why you need to be patient and wait for the right opportunity. Start by estimating your current property and looking for a new one you can afford, stay on top of your finances, and make sure you stay protected by implementing some contingencies, as stated above. Turning to experts might speed up this whole process, so don’t hesitate to get help when you need it.
