Unlike buying a first home, when your needs have changed and you’re looking to sell and buy in the same market , there are certain factors that complicate the situation. It’s very important for you to consider these issues before you list your home for sale. Not only is there the issue of financing to consider, but you also have to sell your present home at exactly the right time in order to avoid either the financial burden of owning two homes or, just as bad, the dilemma of having no place to live during the gap between settlements.
Having Realistic Expectations
Most of us dream about improving our lifestyle. The problem is there is sometimes a discrepancy between our hearts and our bank accounts. You drive by a home that you fall in love with only to find that it’s already sold or that it is more than you are willing to pay. It is important to detach and try to keep emotion out of the process. Most homeowners get caught in a hit and miss strategy of emotional highs and lows when there is a much easier way of going about the process.
Engage an Agent
Most agents have a buyer profile system which will match your criteria with available homes on the market. Make sure you work with your agent to set a sales expectation and a buying expectation. The agent can provide a CMA ( current market analysis) of properties sold as well as giving you unique insights that only the agent will know working in that market everyday.When you engage an agent, they will support you through the process and make sure everything goes smoothly.
Make necessary improvements
If you want to get the best price for the home you’re selling, there are certainly things you can do to enhance it in a prospective buyer’s eyes. These fix – ups don’t necessarily have to be expensive. Even if you do need to make a minor investment, it will often come back to you ten-fold in the price you are able to get when you sell. It is very important that these improvements be made before you put your home on the market. If cash is tight, you might be able to get an equity loan that you can repay on settlement.
Do a Building and Pest Report
If you get a building and Pest Report done before you Sell, it gives the buyers confidence in the house you are selling making them more inclined to put forward their best offer
You should plan to sell before you buy. This way you will not find yourself at a disadvantage at the negotiating table, feeling pressured to accept an offer that is below-market because you have to meet a purchase deadline. If you’ve already sold your home, you can buy your next one with no strings attached. If you do get a tempting offer on your home but haven’t made significant progress on finding your next home, you can negotiate a longer settlement period in the contract which gives you a reasonable time to find a home.There are always options that can be negotiated.
Get a pre-approved mortgage. When buying, make sure you have a pre-approved mortgage. Pre-approval is a very simple process that many home owners fail to take advantage of. While it doesn’t cost or obligate you to anything, pre-approval gives you a significant advantage when you put an offer on a home you want to purchase you know exactly how much house you can afford.
By selling first, you can give your lender a much clearer picture which often results in a much higher lending limit.
Coordinate the settlements. With two major transactions to coordinate together with all the people involved such as mortgage brokers, valuers, solicitors, Building and Pest inspectors, the chances of miscommunication go up dramatically. To avoid a logistical nightmare, ensure you work closely with your agent.