Selling One, Buying Another One (Part 1)
In a perfect situation, you sell your old house at the same day that you buy your new one. However, things don't always work out perfectly. Preparation is the key to a successful negotiation. When negotiating the purchase of one property, while selling another, here are some key points to keep in mind:
Timing to sell
When selling or buyer, consider the seasons of the year. Fall and spring are usually the best times for homes to move. If the closing dates are going to coincide, make sure that delays on the sale might not affect the purchase. If the closing dates are not going to be the same, a gap is better than carrying out two mortgages. It is easier to sell your property first and find temporary housing than to carry two mortgages.
- Selling one before buying a new home minimizes financial problems.
- Get an opinion of value right away knowing how much your property could appraise, or order an appraisal so you will know how the sale of your property will effect your purchase power of the new one.
- Get pre-approved for a loan for the new property. Preferably not contingent on the sale of the old one.
- If you are ready to accept an offer on your home, but didn't find a new one yet, try to negotiate a longer closing date or to rent it back. So you can have more time to find your new home. If unable to do so, find a short term rental / temporary housing.
You suddenly found your dream home, you don't want to risk loosing it, you can afford to hold both properties but have to sell the old one as fast as possible. Here are some tips:
- Negotiate a long closing on the purchase. You can also try to make the purchase contingent on selling your old home.
- Try to set the closing date of your current home prior to the closing of your new home. Short term rentals ( temporary housing) are a better option than holding two mortgages.
- Make sure you are going to price your home at market value so you don't delay its sale.
- Before accepting an offer, make sure your buyer is well qualified to avoid any surprises or delays.
- If you have closed on the new home and have not sold the old one, evaluate if you should rent it out or make improvements to the property to get it sold faster and for a better price.
Karina Leal is your Local Realtor and Ready to Help you!
Follow Karina K Leal, Your Delray Beach Realtor on Twitter, Facebook, Linked In, Active Rain, Blogs, Trulia...And keep in touch with Delray Beach News and Up to Date Marketing Changes and Listings Information.