How Can I Buy and Sell at the Same Time?
Are you growing out of your current home? Have you been considering buying a new home, but hesitant of the process?
Can I Buy a New House the Same Day I Sell My House?
YES!!!!! People do it every day! You don't even need the cash yet for buying your new house! You can use the equity from the sale of your house at closing. A great full time Realtor will guide you through the process and help you sell your house and buy the new house that same day!
How Do You Buy a House and Sell a House at the Same Time?
It's very important to get a professional full time Real Estate Agent to help you with this!
1. First, don't start looking at houses! First step is put your house on the market for sale! I know, I know...that makes you nervous, but trust me it's the smart first step. Otherwise you'll find a house you want and feel the need to sell your house immediately and will under price your home to sell it.
2. Get Pre-approved by a great lender that can close your loan quickly! If your Real Estate Agent says that lenders can close loans in 3-4 weeks then don't go on your own and choose a lender that says 45-60 days, especially if the interest rates and fees are the same! Rely on your Real Estate Agent's advice about this because they do this every day. This is not the time to apply for a loan online with an out of town bank! The deal you think you will get is probably not real and you'll probably be stressing the week of closing because that online lender has a delayed closing. Don't risk it! Also be aware that the equity in your house is usually what most buyers use when buying another house. So you usually won't need additional money. On the day of closing the attorney will apply the net proceeds from the sale of your house to the purchase of your new home. It's very simple!
3. Inspections!!! It's best to do the inspections of your new home right after the buyer's inspections of your current home. That way you're not starting to spend money before you have a good sense of if the sale looks good on your home. Typically when writing a contract for my buyers I write the due diligence date a week past the due diligence date of their house that is selling. What's due diligence dates? That's the date you put on the contract that you can cancel by without losing your deposit. It's the date to get all your inspections done by.
4. Closing Day! The morning of the Closing Day you will have to have everything out of your house but usually won't be able to put anything in the new house yet. Basically you are without a home for a few hours. You'll go to the attorney's office and sign the sale of your house at the same time you sign the documents to purchase your new home. Most attorneys record all closings at 4pm so you might not be able to get in your new home until then. Ask your Real Estate Agent if an earlier closing will be possible because some attorneys electronically record now so you can have the keys to your new home a lot earlier!
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What if I don't want to Sell and Buy on the Same Day?
If you don't want to Sell your house the same day you buy a house then there are other options.
Buying First Versus Selling: The Options
1. Make an Offer on a New Home First, then List Your Current Home
With this option, you would focus on finding your new home first prior to listing your current home. Once you find the one you want, you can submit an offer with a sale and settlement contingency, meaning you will buy only if you can sell your current home.
2. Request an extended closing.
If you know that your home will sell but you just need a little extra fluff of time then it may serve you best to request for an extended closing. The typical closing period is between 30-45 days, but the extending closing will allow for a bit more wiggle room.
3. Ever heard of HELOC?
A HELOC is a home equity line of credit, which means you can borrow against your equity in your current home, if you qualify. The HELOC could be used to pay for your down payment
4. You could also think about a bridge loan.
If you qualify for a bridge loan, it is a short-term loan offered by your bank to cover your downpayment until sales are finalized. However, be sure to go ahead and
5. Rent your home out!
Sometimes keeping your house can be a smart long term financial decision. If the rent covers your mortgage each payment will reduce your mortgage a little more and years from now you'll have a house that was paid off by your tenants! That's like putting money in a retirement account!
How about Selling First before Buying?
Personally I think this is the best option because selling a home typically can take longer than finding a new home. If you start looking before you put your house on the market, you may find one you love too early and then feel the pressure to get your home sold immediately. That can cause you to under price your house and lose equity. So if you sell your house quickly what options do you have if you don't have a new home yet?
1. Pack up your home in PODS!
PODS can be delivered to your driveway. You can pack them or you can hire a mover to pack them. Then they will come and take the containers to a storage facility until you are ready for them to be delivered to the driveway of your new place. The cost is very reasonable and many ways better than moving your furniture to a storage locker.
2. Rent a Beach House!
If it's off season and you've packed your belongings in a POD, then how about treating your family to staying at a beach house for a few weeks? Off season typically gives you an opportunity to negotiate a good rental price, so why not go for it? You probably already found a new home before the closing of your previous house so you're just waiting now to close on your new house. So take the time and enjoy yourself while your Agent and Lender prepare your new home for closing.
3. Negotiate for Possession Before Closing!
This isn't done very often but if the house is vacant you might be able to negotiate with the seller to move in before your closing! New construction won't allow that but a seller of a resale house might consider it especially if you can complete your inspections first.
For Tips on How to Pick an Agent:
Here's a link to an article on How to Pick a Top Selling Agent as Your Real Estate Agent. It will give you things to think about so you're next purchase or sale is a smooth experience.
We Can Help!
Are you looking for the best real estate agency in Wilmington, NC? When choosing a real estate agent, be sure to go with someone who has expert knowledge of listings and selling a property. The Regina Drury Real Estate Group has that and more. We are a Full-Time real estate company in Wilmington, NC; our crew can provide you with all of our expert knowledge and focus on maintaining a high degree of customer service that will leave a lasting impression. Contact us today to talk more about your Wilmington, NC Real Estate needs.