You’ve decided that your current home isn’t meeting your needs — maybe you want to purchase a bigger place to start a family, or aspire to upgrade to an abode with green space so your dog can run free — whatever the reason, selling a home to buy a new one is definitely possible. We’ve outlined a few tools to help you start the process and make your dream home a reality.
Understand the market
Before you hire an agent, you can assess the real estate market to determine whether you should sell your house before buying a new one. For a general overview on market insights, check out the United States Department of Housing and Urban Development’s (HUD’s) comprehensive housing market analysis on your nearest city. You can also check out listings in your neighborhood to get a picture of the current housing market that you are working with.
Is it a buyer’s market, where inventory is high and homes might be on the market for longer? Or a seller’s market, where there is low inventory and higher buyer competition? Or, is it somewhere in between? Getting a clear picture of how homes are selling in your area will get you prepared for your new home strategy and whether you might sell your house first, buy a new house first, or work on both deals in tandem.
Sell your house first
In a buyer’s market, you may want to consider listing your home first. With downward pressure on prices, your home might not sell right away, and you could be in a situation where you are shopping for your new home while your current home sits on the market. Ideally, your buy and sell transactions will happen so that you can move from your current home to your new one without a gap.
Buy a new house first
In a seller’s market, you might sell your home quickly, but it may take longer to find your next home. In this situation, HomeLight’s Cash Close tool may be your ticket to landing your ideal new home by giving you the cash to close on your new home with speed and confidence. After you apply for HomeLight Cash Close you’ll get an offer on your current home, to help you determine how much you can afford to spend on your next one. When you’re ready to close on your new home, the tool will work to buy your current home in cash. You’ll avoid the risk and hassle of buying and selling a home simultaneously.
Buy and sell at the same time
What if you could sell your home and buy at the same time to make logistics easier? If you try this route, you may want to use the same agent to sell your home and buy a new one. Using the same agent will make the process more efficient, especially when it comes to coordinating dates. You may even be able to negotiate a discount on commission, since you will be giving your agent two commissions instead of one.
With a bit of research to negotiate the timing that fits your needs for your new home and your current one, you’ll be on your way to settling into the house of your dreams.