How to Buy and Sell at the Same Time
Bergen County Real Estate Show #5
Hi thanks for watching the Bergen County Real Estate Show. Today we’re going to discuss how my family was able to buy our dream home before our house was even on the market and the steps that we took to get that done. We’ll also have some tips for other methods of doing the same thing, of being able to buy and sell at the same time.
Buy First then List Your Home
So in my circumstance we found the dream home that we wanted to purchase and we went out we found that home and we put our offer and we put a very strong offer in because we wanted the house. And what we were able to do is we put in a clause that allowed us a certain amount of days to get our house on the market and get a buyer. So we negotiated that into the contract that the seller allowed us a certain period of time to sell our house and I was confident at the time that we’d be able to sell our house quickly and be able to move into this house.
So you need to understand the market, of how quickly your house is going to sell, what price it’s going to sell for, and understand your finances before you should do this. So you need to understand the market when you’re doing this and understand how sellable your house is to make that timeline realistic. Before you get into this understand the market, talk to your real estate agent, find out what your house should be sold for and how quickly that agent feels that the house can be sold.
Once we had that agreement the next thing was we sell. And in our case we had some clutter we had some things in the house that just didn’t belong in there. So what we did is we went out and we got a storage unit. A lot of times you can get a storage unit where the first month is free. So in a situation like this you might only need two or three
months of storage to keep that stuff in there. Look out, find someplace in your neighborhood that has storage facilities and see if you can get your first month’s free to help offset that cost a little bit.
But bottom line is you want to get as much stuff out of your house as possible to show it in the best light. Talk to your agent, find out those things that are particular to your house that you need to do and get rid of anything that you possibly can to get that house sold quickly. And when you put in that house on the market you’re in a different situation. You don’t have the flexibility to wait and see how the market is and see if you can get that top dollar. You want to sell your house, you’ve found your dream house, you want to move into that house and that is your motivation.
You’re not necessarily going to be looking to get the top price that you possibly can. You want to get fair market value, you want to get it sold quickly so you can meet the timeline of the sellers and get into your house. So be realistic on price be realistic on your strategy to sell your house and move as fast as you possibly can to meet that timeline.
Talk to Your Lender about Your Options
As you’re getting that house on the market you should talk to your lender. Find out if it is even possible that you could buy that next home without selling your home. Now you could run into a situation where you’re paying for two mortgages and unfortunately that’s a situation that we came into. We had to understand we might have to buy before we can sell. That’s the situation we actually found ourselves in and we were prepared for that and we were able to pay the two mortgages for a period of time until our house sold.
There are options that you can get gifts from family that lenders will approve and allow you to get that cash to buy your house if that’s the situation that you might find yourself in. But ideally you want to get your home sold so you can line these closings up. So you can close on the sale of your home and move into your dream home right around the same time so there’s no overlap there.
List Your Home First
There are other options when trying to buy and sell at the same time. You can list your home first. If you do that and you do find a buyer quickly or before you find
your home that you’re going to move into you’re going to be contingent on you buying your next house. So you need to be upfront with that if your sale is contingent on you buying your next house. You need to lay that out. You need to tell the prospective buyer that you are looking and you need to be actively looking.
So before you have your house on the market in a situation like this you should understand what you’re looking for. What neighborhoods you want and understand that that house is actually out there and that you’re not going to be searching for months and months and months. So I would suggest if you’re looking to sell and buy and list first you should get out and look at houses as much as possible. Get a firm understanding of where you want to be and what price point you want to be and what you need in that house. So when it does come time when you have that buyer for your home you’re ready to find that house and not delay those buyers. Because if you take too long those buyers could start shopping and they could find another house and you could lose them.
It can be a very tricky situation in buying and selling at the same time but it can be done. I did it with my family I’ve done it with a few other families. They were able to line these things up and make it work for them.
So thanks for watching this week’s episode of the Bergen County real estate show where the Gibbons team is dedicated to bringing great information for homeowners sellers and buyers in Bergen County. So they can be educated consumers when it comes time to buy or sell.
Do you know anyone that might benefit from this information? If you’re enjoying it maybe your friends would like it as well. Please feel free to share this, send this video to them, share it with them on social. We’d like to get this to anyone who’s thinking of buying and selling in this area. You can watch all of our episodes at http://www.bergencountyrealestateshow.com or you can
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watching we’ll see you in the next video.