If you find yourself selling your existing home and simultaneously purchasing another one, I’m sure you know that the stakes are very high! As a SELLER, you’ll want to be sure you’ve prepped and priced your home appropriately for the market. As a BUYER, if you need a mortgage for your new purchase and you also need to sell your existing home, your 1st and most important step is have a solid pre-approval letter already in place BEFORE you even start looking for your new home.
As a SELLER – Waiting too long to prep your current home for the market!
From my experience, all homes benefit, one way or another, from a “pre-list prep plan”. As a SELLER, you might need to repaint some rooms, add grout in a rarely used bathroom or spruce up your landscaping. Don’t wait until the last minute to kick-start this process, otherwise you could wind up losing valuable marketing time.
As BOTH a SELLER and a BUYER – Not having a PLAN B in place!
When you’re BUYING and SELLING simultaneously, the number of moving parts multiplies dramatically. And if any of those parts get jammed, it can quickly stall BOTH transactions. On both the selling AND buying sides, having a PLAN B in place is advisable in case everything falls apart. In order to survive such a setback, you may have to book a hotel stay or you may also find yourself looking into short-term rentals, based on the varied circumstances that can arise.
As Both a SELLER and a BUYER – Working with too little of a financial cushion!
Working with your REALTOR, you’ll have a good idea of the what your home should sell for based on the market conditions at that time. BUT what if the market softens while your home is listed for sale? If you’re forced to take an offer that’s $20,000 less than expected, there goes the down-payment on your new home. If you need to use the entire sale proceeds as your down-payment on your next home, you may need to re-think your decision about selling your existing home and purchasing your next one simultaneously. Having cash on hand as an emergency fund would be the BEST DEFENSE!
As BOTH a SELLER and a BUYER – Failing to compromise!
Keep an open mind when issues come up so that an agreeable solution can be made between parties. For example, if you’re “wearing the seller’s hat” – the buyers need an extra week of escrow because there was an issue selling their home. And on the flip side, if you’re “wearing the buyer’s hat” – the sellers don’t think they need to fix a leaky pipe for you. A little “give and take” compromise goes a long way, especially when there are two escrows on the line!
As BOTH a SELLER and a BUYER – Juggling between two different real estate agents!
Simplify the messy process of simultaneously selling and buying a home by using the SAME REALTOR for both transactions. This allows your REALTOR to have control and insight over both transactions and the ability to strategically maneuver around any hurdles that might arise. Of course, there are instances when it would be impossible to use the same real estate agent. If you’re moving out of state, ask your local REALTOR to refer you to an agent within your destination market area.
As BOTH a SELLER and a BUYER – Closing on a Friday or late in the afternoon!
If possible, use the same closing company to finalize both transactions. If that’s not possible, then be sure both closing companies are in communication with each other regarding the transfer of any funds needed from your sale proceeds for the down payment on your new home. Work with the closing company(ies) and your REALTOR to determine the best time of day to schedule the closings. Of course, you’ll want to finalize the sale of your existing home first and then close on your new one. If the same day is not possible, aim to close within two or three days of the other. I highly recommend not closing on a Friday, just in case an issue arises at the closing table, as a solution may not be possible until the following week. Also, when you’re scheduling the closings, aim for the morning. Wire transfers made after 3 PM would most likely not be received until the next business day. Closing in the morning allows extra time for any required funds to hit the closing company’s escrow account for final disbursement.
We hope you found this post to be helpful, informative and interesting…
Thinking of BUYING OR SELLING a home in the Spring Hill, Brooksville, Weeki Wachee or the Hernando Beach areas of Hernando County, Florida? If you’re new to the area, be sure to see what Hernando County has to offer you and your family! In the meantime, visit www.GailSellsFloridaHomes.com to explore our state-of-the-art MLS Map Search Feature where BUYERS can SEARCH MLS listings and SELLERS can SEE what their competition is doing!
Until then… it’s all about YOU!