If you’re thinking about buying and selling a home at the same time, it’s important that you spend time up front preparing for the process and defining what success looks like for you. The exact sequence of events can vary depending on each individual’s needs and preferences, but there are many elements that remain the same. The following tips can help prepare you for the road ahead by asking several key questions to consider before you enter the market for Las Vegas homes for sale.
Do you plan to buy first or sell first?
One of the most important decisions for anybody who is buying and selling a home at the same time is what transaction they will focus on first. There are pros and cons to either option, but determining your approach will help you decide which actions to take first. If you decide to sell first, you won’t have to worry about where you’ll get the funds to purchase your new home. The downside is that you may find yourself in a situation where you have a gap in your living situation, unless you have a clause in your contract like a rent-back agreement that allows you to occupy your current home for a short time after closing. This won’t be a concern if you buy a new home before you sell your current home, but you’ll have to create a plan in advance for how you’ll fund the purchase of your new home without the proceeds from your existing property.
How will you secure the necessary funding?
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Getting your financing in order will allow you to act quickly once you find a home that you like. If you’re thinking about taking out a second mortgage before you sell your first home, your lender will take steps to determine how long you could manage both payments before it becomes a significant financial burden for you. While the goal is for you to sell your current home as quickly as possible, this is not something you have full control over and your lender will want to prepare for every possible scenario. Once they crunch the numbers, they will give you a pre-approval letter that explains what type and amount of loan you can qualify for.
Where will you get the cash for the down payment?
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Make sure that you have enough cash on hand to fund your down payment and your closing costs. Closing costs can vary based on the specific nuances of each sale, but most transactions require the buyer to put forward an amount that ranges between two and five percent of the total value of the home. You can use closing costs as a negotiating point when you’re talking about a potential deal with a seller, and the seller might be willing to pay your share of the closing costs if you are willing to pay a higher price for their home.
Closing costs are a separate expense from the down payment, which must be at least three percent in most scenarios. This isn’t something that you can entice the seller to cover, but there are other methods that you can use to secure funding as you wait for your current home to sell. One option that some people will take advantage of is a bridge loan. This is a short-term loan that can provide you with additional cash while you wait for the proceeds from your current home sale. The drawback to these loans is that they come with a higher interest rate and they may require you to put down some sort of collateral.
Is your current home ready to sell?
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If you want your home to sell quickly, it’s important that you give the same level of thought to your marketing and staging efforts as you would before any home sale. Talk with your real estate agent about how you can successfully market your home. Work together to come up with a marketing plan that includes an emphasis on digital and social media marketing in addition to classic tactics like putting up a “for sale” sign in your front yard and scheduling an open house. Some people will hire a professional home stager to help them prepare their home for professional pictures or in-person showings. Others will assume the task of home staging themselves. Whatever route you choose, make sure you don’t skip this step.
What are you looking for in a new home?
Once you know the amount that you’re pre-approved to spend on a new home, take time to look at available homes on the market to get a feel for what’s available in your price range. Over time, you’ll develop a better understanding of what features and amenities are most important to you. Knowing what you’re looking for in a new home will help you narrow down your options so that you can move quickly when you find a home that you like enough to make an offer on.
Who can help you move forward?
Ideally you’ll be able to team up with the same agent on both transactions. They will be able to offer you advice specific to your situation because they will be familiar with both deals. Greg Clemens has helped many clients successfully buy and sell Las Vegas real estate at the same time. He understands what the process requires, and he knows how to effectively prepare each person for success. He takes great pride in seeing his clients accomplish their goals, and he will stand by your side ready to assist you throughout the entire transaction. Reach out to Greg if you have additional questions about buying and selling a home at the same time or if you’re ready to start working on your own sale or purchase.
*Header photo courtesy of Shutterstock
*Header photo courtesy of Shutterstock
