If you are thinking of selling your home in order to buy another and find this process difficult, you are not alone. In my experience working with sellers, this obstacle is a common issue. In this article I will first go over various traditional ways to sell, then buy a home. Then I will go over a revolutionary way my sellers are buying stress-free.
In all traditional sell and then buy programs, you would need to have your home ready for the sale, then move on to the next. Here is what that process looks like.
In order to sell a home for top dollar, it is ideal to depersonalize and declutter and stage the home. To do so, the sellers need to store away their personal belongings, ideally in a storage unit, not in the vicinity of the property they plan to sell. Other measures that can be taken to make top dollar is moving out of the property, so the buyers can have the impression of being ready to move-in home.
If the seller would like to save money in the short term, they can store all their personal items in the garage and live in the home while selling their home. This method may appear to save the seller money, but in most cases, it will cost them money. This is because buyers tend to not make their highest offers on homes that people are living in.
Now let’s go over these two scenarios and break down their pros and cons:
Scenario 1: Move out of home, sell, then buy once the home is sold.
Pros
Earn top dollar from the selling of your home.
It is convenient to not be interrupted by home showings, neighbors, or anyone else wanting to see your property.
Take your time to look for your next home to buy
Cons
The selling then buying process can take more than half a year.
Month to month rent is hard to come by and expensive.
You will be moving twice, once to the rental, then to your next home.
Scenario 2: Stay in your home, sell in contingent that you buy your next home.
Pros:
It will be convenient to only move once into your new home.
There is less of a risk of being able to sell your home and buy the next
Cons:
You most likely will not receive as many offers as buyers tend to want to buy and move into their next home asap.
Once you accept an offer on your property, you will need to find a home to buy within a certain time frame.
Now let’s look into the various traditional ways to afford the sale, then buy options.
A key element to buying the next home is securing a loan and making sure they have time to move into their next home. The seller has many options.
Qualifying for an additional home loan
Opening a home equity line of credit(HELOC) on their current home to help qualify for their next home loan.
Cash-out refinance their current home to have money to buy the next
In the real estate contract, add a contingency that the sale of your home depends on you finding your next home.
There is another way that you can comfortably buy a home with a cash offer and sell your home for top dollar. 😃😄
😎Buy before you sell☀️
In this process, you will buy your next home with a cash offer, and once you move into your next home, you can put your home on the market and sell it for top dollar.
You can also just watch this video here where I explain the program:
Here are the pros and cons of this program:
Pros:
When buying, you will take advantage of making all cash offers with only an inspection contingency.
Sellers generally buy for less because of the cash offer and sell for more of having an empty home.
A seller can buy the home before selling their own.
The seller will only need to move once.
The risks of buying and selling are significantly reduced by the lender approving you of both transactions upfront with a buyout option.
The seller will not have to worry about being in the way of selling their property.
Typically, there is a much faster turnaround time for buying and selling.
Cons:
Limited selection of lenders who offer this program.
1-2 week turnaround to start the program.
Additional home inspection of your property is needed.
Here is how the lender qualifies you.
First, the lender will qualify you for the program. The lender will ask you to take pictures of your home, ask you for financial information to qualify for your next home loan. If they see you are a candidate, then they will ask you to have a home inspector check your property in order to finalize what you will qualify for. Then the lender will show you what you qualify to buy a home and the full cost of using their program.
What are the costs?
Not much more than a normal sale than buy. You will need to pay any accrued interest from the time you buy, then sell your home and pay title and escrow twice.
I hope you find these options useful. I would love to know which option you think is best for you? Email me at christianbuiton@radiusagent.com and let me know!
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