So you’ve cruised the MLS and begun to see some houses that make you say, as the famed Tiny Fey once did: “I want to go to there.” Your home is small, and terrible, and annoying and the one you see on the MLS is large and wonderful and perfect.
Trying to think of how you can make the move from one house to another can be a lot to take on, especially if you’re like 90% of the clients I work with, and you need the money from the home you’re in, in order to purchase a new one.
So here is a step by step guide to making the transition from one home to the next when you need the money from one house in order to purchase the second.
1) Call Your Agent: Before we start anything, we need to know what your current home is worth, and that number is always changing in different markets.
2) Call Your Mortgage Professional: We need to know two things: The first is how much money is left owing on your mortgage, and how much would a payout penalty be if your mortgage is not portable. With this number, and the number you received from your agent, we can determine the amount of equity you have in the home. The second thing we need to know from the mortgage professional is how much you could be approved for at the very top end.
3) Call Your Agent Again: Tell them the number you got from your mortgage professional, and your agent will set up a search for the type of home you’re hoping to purchase. You will begin to receive emails when new listings hit the market which match your criteria.
4) Prepare to Sell: No matter what the market climate, your next step has to be preparation to get on the market, which can be a time-consuming process, especially if you want to sell for top dollar. This phase can take anywhere from 3 days to a month, depending on the recommendations of our home stager.
5) Check the Market: Here is the time where we need to be mindful of where we are in the real estate market. If we’re in a fast-paced seller’s market with very low supply (aka: available listings). We’re going to sit in our perfectly clean, and staged house and wait for our dream home to come up on the market. When it does, we will write an offer and simultaneously list our house, knowing that in a seller’s market—if we price correctly—we’re likely to sell.
If we’re in a buyer’s market, with an abundance of supply on the market, we’ll list our home first, and once we have an offer, we’ll pick from the oodles of listings available, knowing the right one is likely available to us.
6) Arrange Your Dates: Getting your dates and times just right, is largely the work of an experienced agent. This time can be stressful, but if you have an agent orchestrating the behind-the-scenes, it should be relatively painless.
7) Move: If you plan to move out of your current house and into the new one before you give possession to your new buyers, you’ll need interim financing. This is money loaned to cover holding two properties for the few days before the final sale completes on your old house. Your mortgage broker can put this into place for you. It’s a pretty simple process and many buyers prefer this route so that they have a new house to contain all of their possessions while they clean and prepare the vacant one to turn over to the new buyers.
Buying and selling at the same time is actually a really simple process. The Vanderveen Team guides these transactions every day. If you’re curious about the steps to buy and sell for your specific situation, send us an email, and we’ll give you your options free of charge. email@example.com
The Vanderveen Team
Maxwell South Star Realty
Phone: 403.253.5678 Fax: 403.592.6736