Whatever you do, don't spend a great deal of time worrying about what will happen when you're selling one home and buying another.You're not alone. REALTORS®, lawyers, and title and escrow companies have had plenty of experience in arranging contracts and loans so that the two transactions flow smoothly.
It's best to list your current home for sale first!
Selling and buying a home is a very emotional event and if you create a "race" by locating your replacement property before you sell your current home, you may lose it to another buyer, who does not need to sell in order to buy. If you do find just the house you want, you can always put in a purchase offer contingent (dependent) on selling your present one. However, in a hot market you will have difficulty getting the house you want this way.
Sometimes the seller will sign a contract agreeing to wait a certain period of time while you find a buyer for your house - sometimes not. What would you do if you were presented with such a proposal, from a buyer who also has a house to sell? To put yourself in the best negotiating situation (therefore most likely getting the best deal you can on your purchase), you definitely need to put your home up for sale first.
There is a process your Realtor® can follow to guarantee that you are not without a home.
In the chance that you sell your house and you have not found one to buy, the Realtor® can make sure that you are in the drivers seat and that you aren't forced to go thru with the sale unless you've got a house that you want to buy. Ask your Realtor® about this to make sure you are protected. If you do not follow this process and just list your home for sale, once you are in that contract, you will legally have to go thru with the sale regardless if you have found a new home or not, so make sure you are protected or that you have a plan B.
*(If you do find that you need to buy the next house before you've received the proceeds from the present one, lending institutions can sometimes give you a short-term "bridge" loan or a home equity line of credit (HELOC) to tide you over between the two transactions. Make sure you fully understand the exposure and emotional investment before proceeding with this type of loan. This is something you would need to talk to your lender about and only necessary in rare situations.)
2 comments:
Very useful information on buying and selling homes. I am planning to sell my old home and buy a new one. Planning to invest in Luxury Real Estate Dove mountain and will be booking a home in couple of weeks.
it is very very helpful for all of us and I never get bored while reading your article because they are becomes more and more interesting from the starting lines until the end.
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