Are you thinking about upgrading to a new home but confused on where to start? It is possible in this market, especially if you have a good real estate team in place to make it the easiest transition possible.
Where do you start?
The first place to begin is talking to a lender and getting pre-qualified. They can tell you what loan types are possible and the amount you would qualify for. They can also tell you if you need to sell your home first or if you can afford to buy a home first and sell second.
The next step is having a real estate agent come out to your house and do a Competitive Market Analysis. This will help you determine what your home could be listed for and how much you would roughly walk away with. We can also point out any projects that may need to be done prior to listing.
If you do not need to sell your current home first…
If you do not need to sell your house in order to buy a new one, this will simplify the process and will make the moving process much easier. If you find a home that you want to purchase, you can offer without listing your home and your offer will look more competitive with no home sale contingency. After you get your new home under contract, you can talk to your agent about listing your current property. You can either wait until the new home closes so you can take your time with the move OR you can go ahead and list your property
If you need to sell your home in order to buy one…
The Listing Period
The next step in the process is listing your home and making it contingent on you finding and settling on a new home. This is a very competitive market and we can most likely find a buyer that is willing to give you 30-60 days to find a home. Plus, if your home is listed and under contract, a seller on a property you are offering on is more likely to accept your offer versus if your home was not yet listed or under contract.
The Buying Period
Time is off the essence and it is time to start finding a new home! In this competitive market with an all-time low inventory, this can be the hardest step. Work with your agent to stay on top of new listings and jump on anything that looks like a possibility. Once you find a property and have an accepted contract, it is time to start the inspection and financing periods.
Your Real Estate Team
This is the step where it is crucial to have a reliable real estate team. Your agent, lender and title company all need to work together to keep everything on track. They will also want to coordinate with the lender and title company that is being used by the buyer’s for the property you are selling. It is important to keep the timelines of both properties on track so nothing delays the settlements.
Closing Time
Once you are ready to close on your current home and new home, the title companies will want to work together to coordinate both closings on the same day. Closing day will be hectic as you will close on your old home in the morning and close on the new home a few hours after the funds from the first closing are accessible. Sometimes, depending on the situation, the seller of the home you are purchasing will let you move items in a few days early. However, they do not have to do this and if willing, can charge you a daily fee or ask you to sign a Hold Harmless agreement. This is something to talk to your agent about.
If you have any questions about this process or are looking for a local agent, please give us a call at 301-722-0190 or email us at [email protected].
