Buying A House While Selling Your Own
Buying A House While Selling Your Own
As our lives change, our housing needs and desires change too. The desire for living in a certain location may evolve over time. Perhaps you want to leave behind the sights and sounds of the city and move farther into a neighborhood or closer to friends and family in other areas. As life events change, you may be in a space that is too big or too small to accommodate your needs later on.
In 2020, we discovered the need to use our homes in different ways. The need for “Zoom rooms” and home offices skyrocketed, making us think differently about our living spaces and the ideal floor plan to assist with work and schooling needs. While expanding your home is a viable option, buying a home can oftentimes be much less stressful, even if you’re selling your own house at the same time.
Buying a house while selling your current one is a financial decision many people face. You can use money from the current sale to finance the new purchase, however buying and selling homes simultaneously may cause you to reach for a glass of wine at the end of a long day, unless of course, you have my team on your side to manage the process. The Blake Team can help keep that wine bottle corked during the buying and selling processes.
The Blake Team will partner with you to collaborate on a plan built for smooth transitions and transactions. This is our detailed guide to buying your dream home, while selling the house that no longer fits your needs.
Get Your Team Ready
You have to close two transactions simultaneously, all while doing an emotional transition to a new house. From figuring out your finances to marketing and finding a new house, you have alot of things on your to-do list. It is going to be taxing unless you have professional support. The good news is that The Blake Plan is made for this and you’re on the fast-track to feeling at home in your new abode!
Our team has a proven track record with an average of three days on market, so this doesn’t need to be a long-drawn-out process. We will discuss a realistic sale price for your existing home, and help you budget for your new home. Our experienced agents can help you assess your finances, list the house on the market, and assist in all the paperwork. When you work with Team Blake, you have access to our trusted network of home inspectors, our expert staging techniques, and unparalleled home photography. If a 3D tour or video walkthrough makes sense for your property, we make that happen.
Get Listed, Welcome Buyers
When it comes to selling your current home, The Blake Team will focus their attention on readying your home for prospective buyer visits. Using our exceptional concierge-level service, we’ll set the stage for a warm inviting atmosphere. The look and feel of a house play an important role in enticing buyers. Staging isn’t just reserved for the inside of your home! Curb appeal is the first impression to a potential buyer and we take that into account while creating The Blake Plan for your house. Using our top-notch photography and our exceptional online networks, your house will not only be seen, but be seen in the best light possible.
We will work with you to determine a price that equates to your house’s value as well as what will help you finance your new house. The Blake Team will consider market factors, your mortgage, and a comparative analysis of recent sales in your area to arrive at a price.
Knowing Your Finances Puts You in Control
A contingency plan to sell your existing property and buy a new house is important. You have the potential to sell a house and use that money to close on another within a few days. It is a very smooth process, if things go according to plan. It’s important to also ask the question, what if it doesn’t go as planned? It may result in you scrambling to get funds, adding more stress to your house buying process. It is important to have a plan in place, but with The Blake Plan, it’s you won’t be needing it.
With an average of three days on the market Blake’s homes tend to sell fast. Be prepared for a scenario where you are out of your old house, before finding a new one to move into.
No one knows your finances better than yourself. It is important to consider whether you have enough cash to pay toward the down payment for the second house. Make sure buying a home in Kansas City is not going to put your financial security at risk.
We Stay Up-to-Date on Market Trends and Factors
Buying and selling a house concurrently proves to be a good decision when local market conditions are favorable. The key to getting the best deal is getting the timing right.
When the market is favorable to buyers, it takes longer to get a good deal. You have to wait for a good offer to avoid selling your property at a reduced price. This can have an effect on your ability to make an offer on your next place.
There is the possibility of having to keep your existing house market-ready and yourself financially ready to make a quick offer on a new home. The Blake Team will make you aware of all current market trends and factors that may affect a quick closing.
Working with our exceptional agents can help you with all possible scenarios. For instance, Team Blake focuses on staging and pricing the existing property to ensure it sells fast. If it does not, clients are assisted to prepare contingencies that allow them more peace of mind.
Should We Buy or Sell First?
Are you buying a house before selling the current one? Or are you planning to sell your home first and then move to buy the next one? It comes down to a matter of preference, and the decision is one our agents can help you make by weighing the pros and the cons.
Your first option is selling a house before you have decided on a new one to buy. There is always the real possibility of your house selling quickly. Team Blake can help you calculate this risk. There is also the chance that your house may not sell as quickly as planned, and you end up waiting longer than originally planned. This could stretch your finances, if not properly planned for, you may need to consider selling your house at a reduced price.
With a sales contingency in the buying clause, you may be able to avoid this. Any offer you make to buy the second home will be conditional to include the sale of your first home. Some sellers may not accept such a contingent offer, however, through effective partnership with the seller to point out the reasons your house is competitively priced, they often will reconsider and accept your offer. Working with Blake and Associates can help assist in writing clauses like this into your contract.
A bridge loan is another option if selling a house potentially falls through, but you want to proceed with buying a second one. You receive a loan to close on the new house and then put all efforts into selling the first house. These loans can oftentimes carry a relatively high rate of interest and require a good credit history.
Selling your current house before buying a new one can be the safer bet. This allows for you to get the money needed to purchase a new one. There is less financial strain involved when selling first. If you end up selling your house quicker than you buy, you may stretch out the closing and ask the buyer for time to find a new house. You may also ask for a rent-back clause.
Preparing to Buy a New House
Your awareness of the pros and cons of selling a house and buying another one helps you define your approach. Team Blake is able to help you assess all of the likelihoods involved.
With your house listed for sale, prospective buyers can begin giving offers. With the possibility that you are about to close a deal insight, you can now start the second step – buying a house.
Find out how much down payment you can afford and keep your finances in check. It is important to get pre-approved for a mortgage after considering how much money you are going to get from the current house. This ensures funding problems won’t delay a tight timeline.
Once the budget is ready, work with your Blake team member and begin scouting for houses in Kansas City. Once you have chosen a house you can then submit an offer.
Negotiate Price As Well As a Timeline
While we love the enthusiasm to get you out of an old place and into a new one, we often advise to avoid selling a house and buying another on the same day. An appropriate time gap between two transactions can help reduce the sting of unexpected delays that could come from either transaction.
When selling a house and buying another, have in mind what your ideal timeline might look like. Plan when you should start looking for a new house while on your way to sell the current one. A consultation with a Blake associate will aid in you knowing the timelines for both the selling and buying process.
Based on the expected time to close both deals, plan the gap between them. Negotiate with the buyer of your current home accordingly. As you submit or accept offers, try keeping the dates close to avoid financial challenges.
Can I Sell and Buy the Same Day?
You have the ability to both buy and sell houses within a few hours if you have the dedicated support of a top-notch Kansas City real estate professional, but all three – your home buyer, you, and your seller – need to agree to this. The lack of preparation on the part of one may impact the whole process. For instance, if your buyer faces a problem in getting their mortgage approved or a bank transfer fails to materialize, the timeline on the transaction can extend substantially. Additionally, if you come across an issue during the inspection of your selected house and the seller needs time to fix it, you can expect to add days onto your initial timeline.
Buying a house while selling the current one poses multiple challenges. Team Blake is here to make sure those challenges are met head on. We will help you find buyers, show them your house, and negotiate the price, all while helping you scout your dream house and negotiate a good deal. We know buying and selling houses doesn’t allow you to put your life on hold. Your family and job obligations come first and that’s why we are only a text or phone call away.
Let Blake & Associates help you avoid the hassle and make the transition smooth. With a 99.9% customer satisfaction rating, we are ready to take on your real estate challenges and offer you the best quality service on your transition. Connect with us today to get assured and dedicated support in buying a home while selling your own.