Selling a home is challenging in and of itself, but when you pair the process of selling and buying a home together, many find the process even more stressful and many times difficult to navigate.
We're Tackling the Concern of Selling and Buying a Home at the Same Time
To be clear, the Twin Cities real estate market is hot right now, but as rates begin to climb and the cool weather settles in, active list times can grow longer. With the fall season getting a strong start already this year, more people are beginning to think about fall exploring activities around the area’s fall festivals and corn mazes, not to mention getting back to school. This doesn’t mean buying home is no longer a priority, it’s just the main priority. So, for sellers who need to make a move now, it’s important to plan to sell with a well laid plan for marketing and transitioning.
What makes listing home for sale challenging isn’t finding your dream home or navigating the limited real estate inventory in some areas during a ‘traditionally’ slowing market; (although these are concerns many people here are facing year-round). Rather, it’s the element of timing.
How can you time your transaction best to ensure you can buy and sell properly?
To help you, as home sellers or home buyers, consider these common questions. You’ll find it is possible to navigate the process with a bit of help from Lisa Ash and the Homes by Ash real estate team.
How Do I Sell My House and Buy a New One?
One of the most common questions people have when listing their home for sale in the Twin Cities is this… How can you sell your current home and buy a new one when closing dates don’t always match up? This question stems, most often, from a position of fear of being without a place to lay their head, or even more commonly, because of the need to use the equity from the current home to buy the next one.
Because real estate inventory is limited in some areas, some buyers feel they may need to wait to list their home until they have another home their interested in and ready to go. This is based on a fear the existing home may sell too quickly, leaving the buyer without a home, but this fear could cause the loss of a new home purchase in a competitive market.
Once a home is active on the market, home sellers begin to take potential buyers more seriously. This means any offers made by a prospective buyer who have their own home actively for sale are more likely to be considered before those of potential buyers who haven’t listed existing homes, yet. But, it’s important to know the market, including the average time homes are spending on the market right now in the neighborhood you plan to buy (or sell). Working with a professional REALTOR® can help you navigate all this information and walk you through strategies to get you to your goals with less stress.
How Long Does a Seller Have to Move Out After Closing?
One of the key facts to remember about seller move-out time is you can control some of these factors. As a buyer, when you place an offer on a property, you can include information about how long the sellers have to move out. Sellers can negotiate this with you, but generally, it’s possible to plan this to be anywhere from the same day to 24 to 48 hours after a successful closing.
Building contingencies like this into your contract needs to be done with care to avoid frustrating the other party. Another option could be to negotiate a seller allowance to rent back the home for a mutually agreeable amount of time after closing; a week, a month or two months, etc., until they can completely move out and into their new home.
Can I Buy a House Before Selling My Old One?
Creative financing tends to be important here. With most situations, your lender knows what is happening, and most mortgage lenders also know the local market conditions very well. They understand Twin Cities real estate sells fast, so they are likely to work with you to achieve your home buying goals. One way lenders can help you do this is with the use of bridge loans. Bridge loans is a special type financing that bridges the gap in borrowing needs when buying (or building) a new home before the existing home sells. You will need to work closely with your trusted lender to find this balance.
Another option is to work with your lender and financial planner for a possible loan from your retirement account. Use of these funds for a down payment could impact your borrowing power, but it's important to check with your financial advisor for timing rules to reinvest the funds obtained through a temporary loan like this.
What Happens When You Sell Your House Before You Find a New One?
Again, with limited real estate inventory in some areas of the Twin Cities, it’s possible you could find yourself in this position. In some cases, home buyers or sellers will need to find a month-to-month rental to take advantage of between residencies. In others, moving in with family can help or finding short-term rental solutions. Again, our goal is to use contract contingencies to help you get the right timeline for your needs, but we can also help you navigate very common situations like this.
I’m a First-time Home Buyer. What Happens if the Closing Date on a New Home Is Scheduled Before My Lease Is Up?
Depending on the terms of your rental agreement, you may be able to exit your lease early, however, it’s common there’s an “early release fee” or “cancellation penalty” involved. It’s best to work with your apartment manager or home owner to find the best way to navigate this situation. For a limited few cases, it may be wise to maintain a lease agreement until the end – especially if it is only a short amount of time. This can also be helpful for moving time to the new property, too… giving you extra move in time to give the new home a really good cleaning, put your own colors on the walls, update those appliances or cabinets you were hoping to change up, or get that new flooring in before you move into your new space.
More Questions and Needs?
There are many factors that play a role in the timing of your real estate purchase, but when you work with Lisa Ash; one of the area’s top real estate agents, you’ll gain the insight and hands-on support you need to manage your goals, no matter what your situation is.
One of the key reasons so many people turn to the Homes by Ash team is their collective expertise and success. Lisa’s ability to help buyers through the entire journey, including helping them avoid these timeline struggles, is just one of the big benefits of working with the award-winning professional. Homes by Ash and Keller Williams Realty Integrity Northwest have the experience and resources to manage real estate strategies catered to you and your goals.
Give them a call today at 612-701-8368 to learn more!
