Buying and Selling a Home at the Same Time? FREE Tips!
www.RickStrohm.com
Rick & Rick Strohm, Jr.
August 26, 2011
Buying a home was once a relatively simple task. You might spend a couple weekends visiting properties and then you would write up a contract. Obviously, finding the right home these days is much harder. In our real estate times strict mortgage guidelines, concerns with the market, foreclosures and low appraisals have complicated the buying and selling process.
You need to get educated in this real estate market. Being educated empowers you to come up with a strategic approach, so that you are prepared for all possible outcomes.
Here are 4 tips that you will want to know:
1) Find a real estate expert. Actively search for a local real estate expert - like myself. Keep in mind, our real estate market here in the Smoky Mountains of North Carolina is very "slow" currently. There are over 5,000+ raw land listings on our MLS - we are backed up! Even though we, Rick & Rick, are the best Realtors and most knowledgeable in our area...we are NOT miracle workers. Selling a property (or home) takes time. We market extensively on the Internet (we are on over 40+ real estate websites worldwide).
Meeting with a local real estate expert will provide you with how long it will take to sell, how much you can expect to sell it for and other very pertinent information. TRUST their advice! Almost every single client that I have a listing appointment with thinks their home/property should sell for way more than we tell them. Keep in mind that the Realtor (if you pick the right one!) knows their real estate market, hate to break this to you but, better than you. Keep in mind, that a year before you need to move is not too soon to have your first meeting with the Realtor.
2) Meet with your mortgage broker. You need to meet with your mortgage broker before you start looking for a home or putting your home on the market. This is something you will have to do eventually, but it is essential that you have them walk you through the buying and selling process. You might ask yourself, "Why?" A good mortgage broker can work with your Realtor and help you:
- Figure out the net you need to sell your home for
- How much of a home you can qualify for & how much money you will need to come up with for your purchase
- Help you understand that the sale of your home will impact your credit
- Help time your sale and your new purchase
3) Know your options. Do not try to buy and sell at the same time. Many people try to do this without any time in between because they don't want to "throw their money away on a rental". Again, in today's real estate market very few real estate sales close exactly when they are supposed to, and it is completely out of your control.
If you are selling your home, before your purchase is complete (this could be due to the buyers bank taking longer), know that you can ask for "rent-back". This is where you can stay in the property for as long as a month, or more, after the sale closes with the buyer to pay you rent on the property in the amount of your mortgage payment, taxes and insurance for the time you remain in the home.
So before you panic at the thought that your 'buy' won't close when you need it to, know that there may be options available to you.
4) Plan ahead. Real estate closings are now etched in stone, the time frames can vary - even if you have a closing date set. Have a backup plan in place just in case you close one or both transactions off-schedule is essential to avoiding the panic attacks. If you need to buy before you sell, store up some cash that can cover double payments for a couple of months. If you cannot budget that, then plan on renting a place during your house hunt.
If you have any questions just email me at rickstrohmjr@gmail.com or visit our website www.RickStrohm.com.