Buying and Selling a Home at the Same Time – 6 Mistakes to Avoid

When you’re looking to move-up, down-size, or change things up and already own a home, buying and selling a home at the same time can be a complicated situation. Owning two homes at the same time, having no place to live between closings…yikes! Here’s a list of the top 6 mistakes to avoid when buying and selling a home at the same time.

Sellers – You Deserve More!

1. Rose-colored glassesMost of us dream of improving our lifestyle and moving to larger home. The problem is that there’s sometimes a discrepancy between our hearts and our bank accounts. You drive by a home that you fall in love with only to find that it’s already sold or that it’s more than what you are willing to pay. Most homeowners get caught in this hit or miss strategy of house hunting when there’s much easier way of going about the process. For example, find out if your agent offers a Buyer Profile System or “House Hunting Service,” which takes the guesswork away and helps to put you in the home of your dreams. This type of program will cross match your criteria with ALL available homes on the market and supply you with printed information on an on-going basis. A program like this helps homeowners take off their rose-colored glasses affordably, move into the home of their dreams.2. Failing to make necessary improvementsIf you want to get the best price for the home you’re selling there will certainly be things you can do to enhance it in a prospective buyer’s eyes. These fix-ups don’t necessarily have to be expensive. But even if you do have to make minor investments, it will often come back to you ten-fold in the price you are able to get when you sell. It’s very important that these improvements be made before you put your home on the market. If cash is tight, investigate an equity loan that you can repay on closing.3. Not selling firstBuying and selling a home at the same time is a mistake – you should plan to sell before you buy. This way you will not find yourself at a disadvantage at the negotiating table, feeling pressured to accept an offer that is below-market value because you have to meet a purchase deadline. If you’ve already sold your home, you can buy your next one with no strings attached. If you do get a tempting offer on your home but haven’t made a significant headway on finding your next home, you might want to put in a contingency clause in the sale contract which gives you a reasonable time to find a home to buy.If the market is slow and you find your home is not selling as quickly as you anticipated, another option could be renting your home and putting it up on the market later – particularly if you are selling a smaller, starter home. You’ll have to investigate the tax rules if you choose this latter option. Better still, find a way to eliminate this situation altogether by getting your agent to guarantee the sale of your present home (see point number 5 below).4. Failing to get a mortgage pre-approvalPre-approval is a very simple process that many homeowners fail to take advantage of. While it doesn’t cost or obligate you to anything, pre-approval gives you significant advantage when you put an offer on the home you want to purchase because you know exactly how much house you want to purchase because you know exactly how much house you can afford, and you already have the green light from your lending institution. With a pre-approved mortgage, your offer will be viewed far more favorably by a seller – sometimes even if it’s a little lower than another offer that’s contingent on financing. Don’t fail to take this important step.5. Getting caught in the “Real Estate Catch 22”Your biggest dilemma when buying and selling is deciding which to do first. Point number 3 above advises you to sell first. However there are ways to eliminate altogether. Some agents offer a Guaranteed Sale “Trade-Up” Program that actually takes the problem away from you entirely by guaranteeing the sale of your present home before you take possession of your next one. If you find a home you wish to purchase and have not sold your current home yet, they will buy your home from you themselves so you can make move free of stress and worry. There’s also bridge financing, short term loan solutions, and subject to sale offers amongst many other suitable options as well.6. Failing to coordinate closingsWith two major transactions to coordinate together with all the people involved such as mortgage experts, appraisers, lawyers, loan officers, Title Company representatives, home inspectors or pest inspectors the chances of mix-ups and miscommunication go up dramatically. To avoid a logistical nightmare ensure you work closely with your agent.

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