December 31, 2010 — Realty Times Feature Article by Phoebe Chongchua
For many people this can be a true nightmare but it doesn’t have to be. And that’s a good thing because a lot of people find themselves in the position of needing to sell and buy all at once.
If you’re in this situation then you know that timing and money are two critical issues. What you do or don’t do, can affect whether you have a successful sale and purchase of your next home.
Here are some important tips to expediting and effectively navigating the sell and buy process.
Collaboration. The real estate process is about collaboration and teamwork. When you begin the process, experts advise that you use a notebook to record your timeline of important dates such as when you absolutely must be relocated. For instance, if you’re moving to another city for a job, when are you starting? When do you have to have the kids in school, etc? In this notebook, jot down details of conversations with experts and any transactions. Also, use the notebook to write down your questions that you have for your team of experts so that you’re certain to get the answers you need.
Meet with your team which likely includes a real estate agent, lawyer, lender, inspector, appraiser, and advise them of your needs and time frame.
First things first–must sell that home. Many homeowners need the money from their homes in order to purchase their next one. With that in mind, be proactive. Get a home inspection so that you can find out any potential issues that will slow the sale process. Then repair or adjust your asking price before you list your home for sale.
Get your home on the market as soon as possible. Delaying listing your home will result in a shorter time-frame to get it sold.
When it comes time to sell, if you’re not ready to move in to your next home, work with your agent to arrange a long close or a rent-back option. This will help to avoid the hassle of an interim move.
It’s not always all about the price. When you’re in a situation that has some very particular time constraints, you might find that it’s not always all about the price. Prepare for the best possible offer by screening your potential buyers, make sure they’re pre-approved “within five to 10 days of accepting their offer,” writes Lendingtree.com.
Sometimes a slightly lower offer may be the one that offers greater flexibility and just what you need when it comes to the closing schedule.
Get your buyer of your old home and the seller of your new one on the same page. Put in writing the specific window of dates. Lendingtree.com suggests, “negotiate financial penalties to encourage both stick to those dates.”
Know your price point. This is really important regardless of whether you’re selling a home in order to buy another one. However, when you’re in a time crunch, it’s even more critical to know and shop for the home that’s in your price range. And, of course, just like you’re asking for with your buyers–get pre-approved.
Get an inspection and make sure the new home can be insured.
Having a buyers notebook where you can record all of your notes on your home search and jot down questions is an excellent tool to have handy when choosing which home you want to make an offer on.
Ultimately, selling and buying a home is a lot to handle but it can be a smooth transition. Be clear about your time frame, new home purchase price, and any other details that are specific to your needs.