How to Sell Your Home in Newport Coast and Buy Another at the Same Time

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Real Estate Agent with Coldwell Banker Residential Brokerage CalBRE #01348400

How to Sell Your Home in Newport Coast and Buy Another at the Same Time


Being a move-up buyer can be tough in today’s market. Although deals are closing rapidly, there’s no guarantee that your new dream home will close at the same time as your old dream home. Selling and buying at the same time is a delicate dance, but it is doable. There are a few ways to pursue this plan:Sell Your Home in Aliso Viejo

1. Sell first, then buy. This is perhaps the safest plan, but it calls for multiple moves. In this scenario, you list your home and complete the transaction before purchasing another home. When you sell your home, you put the bulk of your belongings in storage and live in a temporary rental or, if possible, enter into a rent-back deal with your home’s new owner. The advantage of this method is that you know exactly how much you can spend on a new home, and you don’t have to worry about temporary financing. Also, without another home waiting in the wings, you’ll be less tempted to drop the price or to take the first offer that is below the asking price. The disadvantage is that it is a disruptive experience, and you could be displaced for a while if you are home-shopping for a long time.

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2. Buy first, then sell. This strategy minimizes disruption. You can move into your new place at your leisure and then take time to prepare your home for sale. The major disadvantage is that, depending on how fast your old home sells, you could be shouldering the burden of two mortgages for some time. You are also responsible for maintenance and security on the vacant home. This scenario works best if your first home is already paid off.

A variation of this plan is to buy a new home with the plan to rent out the old one for a year. This buys you some time with money coming in, but being a landlord comes with its own stresses and responsibilities. You may also need to repair or renovate the home after it has served as a rental.


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3. Buy and sell simultaneously. To execute this plan, you need to prepare for all contingencies and to know that if your timing is off, you will face one of the two scenarios listed above. The trickiest bit can be timing the financial burden. One option is bridge financing. This enables you to own two homes for a short amount of time. To do this, you need to either borrow money from family or obtain a short-term loan from a bank or other lending institution to span the time period between when you close on your new home and sell your old one. In essence, you are getting a short-term home-equity loan, also known as a HELOC, a Home Equity Line of Credit, on your present house and using it as a down payment on your new house. You then repay the loan when you sell your first home. It is not easy to qualify for a conventional bridge loan, since you have to demonstrate that you have enough money to pay for both mortgages for an indefinite period of time.Sell Your Aliso Viejo Home

Experts advise applying for the HELOC well before you buy a new house. That way most of the credit on the line is unused until you actually need it. Lenders don’t like a HELOC that works only for a very short time, and it’s a challenge to get a HELOC if your present home is on the market.

Try to schedule the closing date on the sale of your old home after the closing date on the home you buy. In this way, you can stay in your present home until you move into your new home. Otherwise, you can attempt to negotiate a rent-back arrangement.

There is no right answer in choosing any of these scenarios. Your Realtor (Brian Jones call or text 949-422-1636) may be able to advise which is best, depending on the local market. However, much depends on your financial stability, as well as your tolerance for risk or disruption.

by Deidre Woollard for Realtor.com

I am happy to provide more information about current real estate activity in Newport Coast and answer any questions you may have about current market conditions. 

Call or text me at 949-422-1636 or email brianjones@firstteam.com

 

 

Search for Newport Coast Homes for Sale 

 

 Are you planning a move to or from Newport Coast? Email me or call 949-422-1636 for information about homes, communities, and all things real estate. If you prefer you can search for homes and explore the pages of my website at your own pace and convenience on www.CoastCitiesRealEstate.com

 

Areas Served

 

Laguna Beach    Dana Point   Newport Coast    Laguna Niguel

If you've contemplated the idea of Selling a home in Newport Coast know that there are buyers out there. Call Brian Jones, Newport Coast Real Estate Specialists at First Team Estates today - let's find them. 949-422-1636

 

Provided courtesy of Brian Jones

CHRISTIE'S International Real Estate
First Team Estates
Call or text 9494221636 for information

 

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Posted by

B R I A N   J O N E S

Realtor

Coldwell Banker Residential Brokerage

C: 949-422-1636
email: brian.jones2@camoves.com
www.BrianJonesOCHomes.com

Brian Jones 

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Rainmaker
845,953
Barbara Altieri
Kinard Realty Group Fairfield and New Haven County CT Real Estate - Shelton, CT
REALTOR-Fairfield County CT Homes/Condos For Sale

Brian -- Just negotiating a rent-back now. Homeowners need more time to find a home since the inventory is so low.

Dec 19, 2013 11:07 AM #1
Rainmaker
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Brian Jones
Coldwell Banker Residential Brokerage - Laguna Beach, CA
Realtor, Coast Real Estate Specialist

I like using the rent-back as well, when both parties are able to work it out. I recently had a problem with the new buyer keeping the security deposit on a rent-back. We are still trying to work it out. Good luck finding a home.

Dec 20, 2013 02:26 AM #2
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Rainmaker
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Brian Jones

Realtor, Coast Real Estate Specialist
Yes! I'm interested in homes in Laguna Beach, Ca!
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