If you’re in the process of obtaining your next home, you’ll likely need to sell and buy within a small timeframe. What’s variable is which side you’ll complete first. Recent market trends are the best data for navigating this change well. If the local activity has buyers on a lucky streak, you can rest assured that you’ll find your next home quickly. Your property will go fast in a seller’s market, but you could face a housing gap. Ask your realtor for the latest statistics to find out what's hot. They will be experienced with your neighborhood and have education on buyer and seller behavior. They will help you with the various things to consider when performing two real estate tasks simultaneously.
Observe who has the upper hand
While deciding how to construct your real estate itinerary, knowing what type of market is in action will help. There will be noticeable signs either way. For example, stale listings indicate there is a buyer’s market. Sellers will be more amenable to buyer wishes at the closing table, dropping their asking price, committing to desired upgrades, and working buyer requests into the contract.
In a seller’s market, the buyer compromises. With a shortage of homes for sale, high bids and superb negotiators close the deal. In this situation, the home seekers might go out of their price range out of desperation. They might ignore serious structural or functional issues and not push for contingencies at closing. “Money pits” become viable options when the market is so bare.
These behaviors provide a picture of the market, but relying on your realtor for accuracy is crucial. On top of hands-on experience, your realtor will produce a comparative market analysis. When selling, this report leads you to the primary information you need: what figure to ask buyers to pay. Buyers will use this information to narrow down their dream home. Your real estate agent will know which way the trends sway and work to make buying and selling a home at the same time a successful venture.
Design your timeline after research is complete
Once you and your realtor have sat down, looked at the market, and discussed your goals, it’s time to set up an ideal schedule. Expect about eight weeks to find and complete the purchase process on the next home. Receiving an offer might take two to three weeks, with four to six weeks to finalize your home sale. There will likely be some overlap when you sell your home and then move into the new one, but good planning can make the transition have fewer hurdles.
Selling first is advantageous with forethought
If the landscape looks promising, selling before buying might be an excellent strategy. Having your property sold early will put you in front of the buying crowd. Sellers will prioritize your offer, knowing you’ve made a profit. There won’t be the pressure to move into a new home before selling the first.
Establish a home away from home
This option, while beneficial, is best under certain conditions. Firstly, if it’s been determined that your local market favors buyers, you’ll have a better chance of locating the next house quickly. Having family or friends to stay with during this gap gives you wiggle room to look for the next place. If you are moving closer to loved ones or advancing your career, you’ll likely find assistance. If it’s necessary to go independent, short-term rentals, Vrbo, and Airbnb are great options. You could also consider renting a storage unit to protect your belongings while home-seeking.
Give yourself a buffer at the closing table
If none of these situations sound favorable to you, many homeowners opt for leaseback agreements. This changing of roles means a seller can pay rent to a buyer for about 60 days after closing. If the idea bodes well in negotiations, a leaseback agreement can give a seller breathing room to look for a new home, complete any repairs or upgrades on the old one, and have time to pack and make moving arrangements.
The right formula can make buying first ideal
Perhaps your realtor’s analysis showed that home listings are sparse, so you decide to purchase your new home while your current home is still on the market. This approach can be practical by having prerequisites in place before purchasing.
It’s possible to keep your purchasing and selling dates close together by taking the proper steps. Jumping to the marketing process once the buying is complete is practical. Have the original home staged by decluttering, decorating, and renovating. In addition, the listing should be drafted and ready to post once you’ve moved into the new property. Your realtor can help with these pertinent aspects.
Prolong the closing process to cover overlap
Pushing back the closing date will allow you more time to browse for the next house. It’s good to find out if your buyer is open to a window of 60 or 90 days instead of the usual 30 to 45. There’s much potential they’ll agree, as it allows them to settle with their lender, find a moving company, pack, and any other odds and ends of their buying process.
Along with having time to review home listings, attend open houses, and talk with your realtor about reasonable offers, an extended closing has many strong points. If there were any hiccups on the inspection or appraisal, you now have more time to amend them. The buyer may have requested that you replace worn kitchen cabinets or paint the living room a trendy new color. This space in time leaves you free to fulfill these concessions. As a bonus, packing and finalizing the details of the move will be less of a hassle.
Negotiate to recover from pitfalls
Hopefully, you won’t need a home sale contingency, but it can be a failsafe. The addendum means you can back out of a purchase if your home doesn’t sell. Sellers will be agreeable to the clause if they are convinced your house is a sure bet. If your property is in a highly coveted area, such as the
Johns Creek homes for sale, it would be evident your listing won’t be open for long. In a buyer’s market, fewer offers are coming in, so sellers are more compromising. If you decide to go this route, be sure your realtor is a fierce negotiator. Skilled arbitration will ensure your home sale contingency is part of the deal.
Ready to enter the market?
Susan Lombardo has the best experience to guide you through the buying and selling process. Susan has lived in the North Atlanta area for over 15 years and gained numerous accolades as a seasoned realtor.
Contact her for excellent real estate advice.
