Whatever your reasons are, there comes a time where the old home isn’t working anymore. Looking for a new home is easy. The hard part is purchasing a new home and selling your old one is bound to be confusing and difficult. Selling a home first means you’ll rush finding somewhere new to live. Buying a home first means paying two home mortgages. Here’s how to buy a new home in Prescott, AZ when you have a home to sell.
Before selling or buying any home, examine the market in the current and future neighborhoods. Professionals in the real estate market have a good idea of what is hot or cold. Hot means buyers and sellers are buying and selling property. The home won’t have to remain on the market long before someone else snatches it up. The same is true for buyers. Cold markets mean that no one is interested in buying a home (or there aren’t enough people interested) and too many houses are for sale (the home sits there a long time without an offer). Take the time to understand the market and how it works. After the thorough examination decide whether you want to sell your home or purchase a new one first. There’s no wrong answer, but there are steps to follow. Do so carefully.
Buying a home before selling your own is a tricky strategy especially for homeowners with current mortgage payments. Succeeding in this venture means double the trouble: mortgage payments, insurance, and other costs are on both houses instead of one. After the home is bought you can recoup some of the money through selling the home. Take advantage of home equity line of credit, bridge financing, and borrowing money (with a promissory note) from loved ones.
Selling your home before buying another one is a good strategy because there will be cash on hand. After the home is sold you can shop for a new one. You’ll have enough money for a down payment, the first mortgage payment and other home buying expenses. Options to take advantage of for this procedure is staying at a temporary place and using storage. Temporary places include staying at a hotel, with loved ones, or in a short term apartment. Be prepared to pay money per night or per month as rates for hotels and apartments are going up.
Selling and buying a home requires a realtor or other home professional by your side every step of the way. The professional can guide you to homes that fit your budget. They also give advice on the competition in the neighborhood and how to make the home presentable. Veer into the competitors homes for sale and make sure your home looks better than theirs. Price the home low enough to attract buyers but fit within the market value. Finally be patient. This will be stressful, and grabbing the first home on the market just to say you have somewhere to live will be a huge mistake.
Remember this: there is not a guarantee that the home will be sold and another will be purchased at the same time. There will be times where neither is happening (one is out of the way but the other one is taking more time than expected) or both is yours at once (a home is purchased but the other one isn’t sold). That’s expected. As long as it’s running smoothly the transition will be complete. Contact us for more information.
