After living in your home for a few years, it may be time to move into a new one. Perhaps your company is transferring you to a new city, or maybe you have started a family and need more space — or maybe you are just ready to “move up” in the world. As frequently as people switch or “upgrade” homes, you would think the housing industry would have perfected a process for selling your home and buying a new one at the same time. However, while it is done successfully by millions, it does not happen easily. There are many moving parts in the equation. The following tips and techniques are commonly used to smooth out the process, and they can work for you, as well.
Make an Offer with a Contingency Clause
One of the most common strategies for simultaneous selling/buying is to make an offer on your new home with a contingency clause in the sales contract. The contingency clause says your purchase of the new home hinges on a successful sale of your current one. Some sellers are reluctant to accept contingency offers. However, this can be a good option if the seller is not in a hurry, if the seller is motivated, if you can demonstrate that you are well-qualified and/or if you can convince the seller that your home will sell in a reasonably quick amount of time.
Get a Bridge Loan
You may not have to float two mortgages simultaneously. Many banks offer a bridge loan to qualified borrowers — a loan that enables you to own two homes simultaneously for a temporary amount of time. It is a short-term loan that is repaid when you sell your existing home, at which time you can switch to a new mortgage.
Price, Stage and Market Your Home to Sell
If your ability to afford your new home depends on the sale of the old one — especially in a contingency deal — the pressure is on to get your existing home sold as quickly as possible. Now is not the time for wishful thinking as to the price of your home. Make sure you price fairly but in a range that will make it attractive to buyers and decide how low you are willing to go on lower-than-list-price offers. Also, make sure the home is properly staged and have your agent embark on an aggressive marketing campaign to blast your listing across as many channels as possible.
Selling your home and buying a new one at the same time is not an easy task, but with patience and flexibility you can get it done. A seasoned, experienced agent can help the process immensely. When you are ready to start, give Atlanta Fine Homes Sotheby’s International Realty a call at 404.948.4812.