Selling and Buying at the Same Time

Buying a home the second time takes the pressure off because you have already jumped through the hoops once, crossed all your t’s, and signed on the dotted line. In other words, you know the drill now. However, this time it is going to take more finesse as you balance buying your new home and selling your old house.  
Most people can’t afford to pay two mortgages at one time. Many depend on the equity from the sale of their first home to purchase their second one. In order to sell your house and move directly into your new home without unpacking, sleeping on a friend’s couch or purchasing a storage unit, you have to know what you are doing. Run through this checklist to see if you are ready for this fast-paced, unpredictable, and exciting ride.
  • Know your needs. When you look to sell your house, you must find the minimum acceptable value that you could live with selling it for. No, the number is not ideal, but sometimes it is good enough to cut your losses, saving you the stress, time and the panicked haggling that accompanies selling a home. Knowing this number will help you to act decisively, making responsible decisions for your household.
  • Don’t let yourself fall in love with the homes you view while you still own your old house. If you do, you are just asking to have your heart broken. When selling a house, sellers want to get the property off their hands as soon as possible to whomever. They are not concerned with your desire to own the home contingent on your home’s sell date that has not been set when there are other people who have the money and are ready to pay.
  • Get started with your lender. You want to be on top of this step because this step ensures you have the funds for your new home. By having your cash ready and your paperwork done you can, seriously look at houses to purchase. Finding an experienced lender who has helped other people in the same situation is helpful. You want them to have faced tricky situations and have successfully helped buyers like you come out on top. They will be ready for any curveball that comes their way. 
  • Have a backup plan. At best you sell your house and immediately move into a perfect new home. However, in an unpredictable market you must be ready for the worst, just in case. 
  • Contingency offers and post-possession agreements. While there are many types of contingencies to look into, a sale of home contingency offer protects you, the buyer, in the case that you cannot sell your house. It allows you a set amount of time to sell your old house and protect your interest in the new house. It also protects your earnest money if the sale does not go through. Post-possession agreements can be another way to protect yourself. As the seller of your old home, in this scenario, you and the person who buys the old house may agree to let you stay in your house until you find another house to live in, paying rent to the buyer until you can find another place. 

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