It can be quite tricky to sell and buy house at the same time. However, with the few tricks up your sleeve, you can do it.
No one wants to stay homeless after a home sale, before they find a nice, new property. Rental is expensive, and in the age of global pandemic couch surfing isn’t safe – in fact, in some states it isn’t entirely legal, at all. Many people don’t realize it’s possible to sell and buy house at the same time, especially during lockdown. However, this is very much doable, if you only follow a few tips and tricks – including, of course, the precautionary measures. Everything has to be done safely, not to damage the health of anyone involved. But with a few catches, you can do it. Of course, COVID-19 pandemic has taught us all to expect the unexpected, so some steps might take longer than expected. And keep in mind that nothing is certain until the both sales are closed.
Now that we’ve got that out of the way, here’s what you need to do if you want to sell and buy house at the same time.
Make Sure How Much Equity You Have
Before you take any other step, you should know just how much equity you have, as this is what will greatly determine your future profit. It would be a good idea to contact several appraisal agents who might be able to let you know just how much equity you have. Don’t stick with just one agent, as they might not determine the right value due to many various factors. Of course, you don’t have to stick with the amount they tell you, as you’re the one in charge of the selling price – but keep in mind this might lower your sale chances greatly. If you go overboard, the buyer might not even be able to get a mortgage. When planning ahead, which is necessary when trying to sell and buy house at the same time, you should always aim for a bit lower than is achievable.
Prepare All the Documentation Upfront
When attempting to sell and buy house at the same time, you want everything to go as fast as possible. One of the longest parts of the sale when going the traditional route is the collection of all the various documents, so it would help if you get everything in advance. Your deed and title, mortgage papers, insurance, you should have it all prepared. If your home sale gets delayed, you might lose the property you are eyeing. On the other hand, if the home purchase gets delayed, you may sell your house without having anywhere to go.
Secure a Mortgage
Chances are you’ll need a mortgage for your new property. This is another step you should complete beforehand, otherwise your entire plan might backfire. Contact your lender and let them know about your plan. In most cases, profit from the home sale can secure you a down payment. Keep in mind, though, that when selling the traditional way, you might have to wait for quite a while before getting that money. This is why many sellers who are in urgent need for money or who need to complete everything fast opt to work with a cash buyer such as Sparks Property Investors LLC, as they’ll help them get the money almost immediately.
Find a Buyer
Of course, you can’t sell and buy house without finding the potential buyer in advance. This gives you an upper hand when securing the property you want to purchase, as well as mortgage. If you have a buyer, you’ve ensured the money, and most sellers will appreciate it. In fact, you might even be able to negotiate for a better price, as you’ll be deemed a serious buyer. Of course, you have to ensure the buyer is trusted and that they’ll surely purchase your property. Once again, you have to have in mind that nothing is obligatory until the sale is closed. Some things can run up until the very final day and cause the sale to fall through.
Find an Affordable Property
While you should be keeping an eye on properties for sale in your area of interest for a while, you shouldn’t make a final decision until the agreement with the buyer is made. Only this way you can be certain in the amount of money you have and if you’ll even be able to sell your first property on time. Check out the price of the houses and see how much you can afford. Try arranging for an inspection to make sure nothing is secretly wrong with the property. You don’t want to have to spend a huge amount of money just to make a place livable.
Can You Speed Everything Up?
If you truly want to sell and buy house simultaneously, the best option would be to find a reliable direct buyer in Milwaukee, such as Sparks Property Investors LLC. These buyers, also known as cash buyers, don’t use lenders when buying properties, so there are almost no chances of a sale falling through. This also means you’ll be able to get paid in cash, which will further speed up the process. Direct buyers buy properties as-is, so you don’t have to waste time and money on making repairs if your house is in less than perfect condition. Sparks Property Investors LLC works following all the guidelines and precautionary measures, so everything will be executed safely and following the rules. With a bit of luck, when working with direct buyers, you may be able to close the sale in just seven days. And if this is all too fast with you, talk with the buyer, as most of them can delay the sale and arrange for it to happen at a time that fits you. You may even be able to rent your place back in case your purchase deal falls through! In the age of COVID-19, safety is the key.