When it’s time to sell a home, many homeowners ask the same question. Is it possible to sell and buy a home at the same time? The short answer is yes, but it can be complicated. Considering three critical points will help you navigate the process:
- Hiring the right broker.
- Understanding your prepaid options.
- Nailing the time of two closures.
What to do if you can’t sell and buy at the same time? Fear not, we also have advice for that.
1. Find the Right Broker
The best person for the job is a great communicator who can balance sales and purchases at the same time.
“A good broker set the stage for your ideal interests during negotiation, and then maintain the deal, “says Kelsey Martin, authorized real estate salesman and co-founder of The Davidson Martin Team at Compass.” Daily entries, deadline reminders and status updates must be communicated to many parties, including of the lawyers, a mortgage broker, a real estate manager and of course the client. “
Ideally, your broker will have previous experience trading in the building, giving a sense of how long a purchase application will need to be reviewed and approved. Equally important is not to set unrealistic expectations about how quickly a transaction can be accomplished.
“Lawyers use the term‘ in or about ’as a 30-day buffer to legally exceed a time limit without penalty,” says Martin. “A good broker similarly needs to maintain access when offering clients advice on preparing for a move.”
2. Buy a Home Without Down Payment
It’s catch 22. It would be useful if you had a down payment to buy a new home, but you won’t have the money until your current location is sold. What to do? There are possibilities.
Find a home with a mortgage foreclosure that has a sales crisis
“A pre-approval letter with a mortgage contingency will inform all parties ahead that the offer is based on the sale of the buyer’s home,” said Michael Sema, Founder and CEO of Get a Rate, tells us. Although this is an ideal situation for the new home buyer, the offer may not be as attractive to the seller, especially in a competitive market.
Get a bridge loan
“It’s based solely on the value of the property you’re selling, and allows you to take on that equity to cover the down payment of the new home,” says Richard Barenblatt, a mortgage specialist at GuardHill Financial Corp. ” tip loan it’s just an interest-bearing loan, so it lowers costs. But because it’s designed as a departing apartment, it means there’s an immediate need to sell. Therefore the maximum term is 12 months. ”
Refinance and use the liquidity
“With interest rates so low, refinancing or a bridge loan in your current home to pull a tie could be a good solution,” says broker Bill Kowalczuk of Warburg Realty. “Refinancing can help you pull equity out of your home so you can buy another.”
3. How to Plan Two Closures
Okay, so you figured out the finances to sell and buy a house at the same time. Now, how do you figure out the perfect time closing on the home you just sold and which one will you buy? Not surprisingly, it can be difficult. Success depends on several factors beyond the control for both sellers and buyers. Indicate the real estate attorneys.
“Lawyers can set these details in a contract allowing the seller a certain amount of time to stay in the home with the cooperation of the buyer and the buyer’s legal team,” says agent Rowena Dasgupta of Warburg Realty. This in turn would allow the seller who buys a new home to work with a specific timeline, within their comfort zone, to close their new home.
Karen Davidson, an authorized real estate salesman and co-founder of The Davidson Martin Team at Compass, notes that in this scenario, either side can “delay” the closure for up to 30 days from the initially scheduled date before breaking a contract. “No matter how accurate we are, there’s always the chance that there will be a few weeks,” she says.
4. What To Do If You Can’t Sell And Buy At The Same Time
If you do find yourself in this scenario, don’t worry. You have options.
Rent a temporary place
It will relieve some of the pressure, and luckily for you, short-term rentals abound in New York City. Good resources include Avalon Communities and Airbnb. “This removes any concern about coordinating closures and giving people a chance to try new neighborhoods,” says Davidson.
Make a lease
“You can make a lease with the apartment you’re selling, allowing you to rent your home,” Davidson says. “By staying in your current home and renting it from the new owner, you can close your new home without panic.”