Anyone who has bought one home while selling another knows that this is no easy feat. Questions abound: How do you get the money for the new home if you haven’t sold the old one yet? How can you coordinate the timing for the move? And what if the contract falls through for either transaction?
It’s far from simple. But recently The Group newsletter offered 5 ways to make things easier:
- Know your current home’s worth. Ask your real estate broker to help you calculate the net gain you’ll receive from selling your home once you’ve paid off the mortgage and other transaction costs. This is money you’ll have to help purchase your new home.
- Learn your financing options. Talk with a respected lender about what your new mortgage might look like and then consider where your down payment will come from. Be sure you understand terms like “bridge loans”” and “home equity loans.”
- Have a game plan. Are you buying or selling first? Talk with a real estate agent to learn the advantages of each option.
- Understand the market. Your broker will guide you on how long it might take to sell your current home, what competition you will face and how to price the home for the best results. Knowing the timeframe can help you strategize your plans to buy another home.
- Clean up. Get your current home in top shape by eliminating clutter, tidying up the landscaping, making repairs and anticipating problems a home inspector might find. This way, you’ll be ready when a buyer comes your way – and one step closer to moving into your new dream home.