Things change from week-to-week in the real estate market. Selling your home for today’s market value, when a more balanced market is forseeable may mean a slightly less competitive experience on the purchasing side.
When selling first, you have more control over the term of your contract; including closing dates. By having a longer closing, you give yourself time to find the right property. If you offer on a home that expects a quick closing and you have not yet sold, that can be stressful and lead to carrying two mortgages for an extended period of time.
With a strategic plan in place to mitigate risk, and keep you in the driver’s seat, the rewards of selling your home in this market before purchasing your next one can be impressive.
With definitive financials to provide to your lender, you may have more purchasing power. A firm sale is music to the ears of banks and mortgage companies and alleviates the need for certain conditions of the mortgage. When you find the right property, you can offer confidently and possibly for more than you originally thought possible. It could be the difference between getting your wants, and not just your needs.
Your realtor has access to all sorts of “Plan B’s”: short-term rentals, storage, facilities and leaseback options that could help make this a reality for you so you can capitalize on a hot seller’s market and use every dollar possible to secure your next investment.
Buying a home in a competitive situation can bring out emotions and cause people to spend more than they planned. Committing to a higher purchase price before locking in your sale can leave gaps and leave you in a panic to make up the difference before closing..
Does this apply to you?
– The price I receive for my current home will determine where I go next.
– I want to make a move but I am concerned about this market.
– My budget is tight and I’m not sure how to get started. What happens if I sell my home and I can’t find a place to buy?