Many times people embark on the journey of buying a house at the same time they are selling their current home. It can be a stressful situation with many balls in the air at once. There is a lot at stake when doing these two transactions. Many mistakes that can occur during this process are easily avoidable – especially with the help of a great real estate agent! We can help you avoid the following scenarios:
- Waiting to prepare your home for selling
a. Most homes need a little something before they are ready to sell. If you wait until the last minute, it likely will not get done. With so much going on it will be hard to find time to repaint a wall or fix broken features.
- Not having a backup plan
a. It is never a guarantee that you will be able to sell your home and close on a new one at the same time. It is crucial to have a back up plan in case you start to stress. Make sure that you have a strong emergency fund. You may find yourself needing to stay in a hotel or find storage until you are able to close on your new home.
- Buying too big
a. Orange County Realtor Jessica Althoff says “one of the biggest mistakes that we see simultaneous buyers and sellers make is the same one that many first-time buyers make: They fail to get pre-approved on their new loan.” Pre-approval is crucial because it will keep you from dreaming unrealistically on the size house you can afford. With pre-approval you will know what ballpark you can aim for.
- Having no cushion
a. You need to have a cushion on the amount you need to sell your home for. Problems can arise if you hope to use your entire sales price as a down payment on another home. If you have to take an offer that is less than sales price, you could be in a predicament. You should plan on your house selling for less than you are asking for to avoid this issue.
- Failure to compromise
a. It is with no doubt that moving is a stressful time. Remember that as you think about the people moving out of the home you are trying to buy. They and their agents are in the same boat as you. You may run into an instance where the seller needs a little more time because their purchase is running astray. You need to compromise.
- Using two different real estate agents
a. This process will be much simpler if you use one real estate agent for each transaction. If we are able to have insight of both sides of the transaction, there is a better chance the transaction will go smoothly.
- Closing on a Friday or late in the day
a. We will work with you to determine the best timing on finalizing the sale and purchase of your homes. It is best to aim for closings within two or three days of the other, and never on a Friday. This is because bank transfers can take time to go through. You want to have a few days for the money to go through. Another tip is to schedule the closing in the morning, especially for the sale of your current home. Banks typically stop wire transfers by 3pm so closing in the morning gives you more time for the money to successfully get into your account.