NEED TO SELL TO BUY? HOW DOES THIS WORK?

IF you are one of the rare homeowners with the financial ability to pay two mortgages at once, THEN THIS DOES NOT APPLY TO YOU!  buying a home before selling your current home is not really an option. Given the fact you need to sell your current home to pay for a new one, you will need to prepare yourself for uncertainty.   THIS CAN BE A DAUNTING AND STRESSFUL TIME IN YOUR LIFE!  Even doing everything right, you may find yourself in limbo for a short period of time. Take heart, though. Most homeowners are able to sell their homes, purchase a new home and move before ever needing to FIND temporary housing.  IF YOU WISH TO BUILD A NEW HOME, THEN THIS MAY NOT APPLY.

THE FIRST STEP IS TO SPEAK TO A REALTOR

Find a realtor!  There are so many ways to find a realtor these days!  Looking up

realtors in your area by googling, replying to postccard/flyers received, going to

various local realtor sites like Remax.com, open houses, or buyer sites like
 realtor.com, zillow, trulia, etc..  I would be happy to help anyone in this 

situation if your located in south eastern Wisconsin preferably in waukesha, 

Jefferson or Dodge County.  Be honest with your realtor about your finances!   

You may not be aware of the possibility that you could be facing a short sale!


Knowing your financial situation is pertainent!
For many you still need to finance your home purchase. So your purchase will need to be contingent on your home selling.  Your realtor will explain this process to you.  Contact a lender for a pre-approval.  Make sure your pre-approval states whether it is necessary or not to sell your current home to be able to purchase a new one.  Your loan officer will be able to give you all the options available to you with financing.  

Knowing the process!

Speaking to a realtor about your situation is the key to a smooth transaction.  

WHAT ARE YOUR OPTIONS WHEN SELLING AND BUYING A HOME AT THE SAME TIME

When you are selling and buying a home at the same time there is certainly a balancing act to be achieved.  Of course everybody would love to sell their home and move into a new one on the same day.  Here are some options to consider if you are looking to simultaneously buy and sell a home.

FINANCE BOTH HOMES

For very few carrying two mortgages can certainly provide the easiest route to buy and sell at the same time. This allows you to find your home and close on it, then, sell your home after you have secured new housing.  Of course this means you need to qualify for your new mortgage while carrying the mortgage on your previous home.  This option is only for a select few.
You may also need the cash in your old house for the down payment on your new home. Maybe you have enough equity and enough credit to get a home equity line of credit for you to tap into your current homes equity.  While this is the easiest option it is probably not a reality for many homeowners.  Keep in mind, the home equity loan must be paid off when the house closes!  Not to mention all the closing costs involved.
CONTINGENCIES
This is the reality for most home owners!  Selling and buying a home simultaneously can be done with real estate contingencies written into the purchase contract.    When you put a home under agreement it will be contingent on selling your current home.  If the contingencies don”t fall into place you are not obligated to buy or sell with no recourse to you.  This is the only option for most but beware in a seller market, your house could sell before you can find the house you want thus throwing you out to find temporary living arrangements. Same true in a buyer's market but just the opposite.  You may find plenty of houses to buy but your home sale contingency can find you loosing the house as another buyer already wants it and has no home sale contingency.  This is common when you are down sizing and amongst the first time home buyer market. 

 FIND ALTERNATIVE LIVING ARRANGEMENTS FOR THE INTERIM

Another option that is available is to get your home sold first and have alternative living arrangements available for an interim period while you look for and get a home under agreement.  This certainly reduces the stress of getting your home sold and buying a new one on the same day. This may be the best option when you can not find a house on the market that you want to buy.
Living arrangements can be a family member, short term rental or a residence hotel.  Remember if you are motivated to buy it will only be temporary.  Several months at best so don't get locked into a year lease unless you wish to wait another year for the right weather conditions for moving or disrupting the kids schooling options.
This option will allow you to negotiate the best deals on the sale of your home and the purchase of a new home.  The downside is you will most likely have to pay a mover twice and possible storage of most of your items while you search for a new home.

FINAL THOUGHT ON SELLING AND BUYING A HOME AT THE SAME TIME!


Of course it can be stressful, especially when children and pets are involved.  But homeowners do it everyday and as real estate agents we are adept in walking our clients through the process.  Just go into it prepared of what is ahead of you. 
When you are buying and selling simultaneously, it is probably wise to have a plan A and a plan B.  There are so many moving parts and variables it is wise to have a back up option.

Make sure to discuss with your realtor the market.  You need to know if your home is going to sell quickly or perhaps in a slower market in several months.  Your realtor will know based on the price you want to sell it for, if it WILL SELL and how long it may take. Pricing higher then the market analysis is not advisable.

FINALLY make sure your home is ready to sell!  Decluter, paint and rid the home of smells!  Pet smells and smoking smells are the 2 biggest turn offs!  Most people will walk away!

Call/text or email me if your in this predicament and I would be happy to give you a FREE market analysis!

Kathy Knight
Remax Realty Center

kathyknightremax.com
kksellzhomes@gmail.com
920-397-0769

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