Real estate experts often talk about buying and selling a home as if they’re always two separate events. However, many people do both at the same time. You have to carefully juggle your commitments and priorities to make sure everything goes smoothly. To successfully balance selling your current home while you’re looking to buy a house in Irvine, follow these tips.
1. Get Your Finances in Order
When timing is so sensitive, you don’t want things to stall due to financial problems. As soon as you make the decision to buy and sell a house simultaneously, you need to meet with your current lender. Keep in mind you won’t be able to use any of the equity you get from your home until the sale closes, so you might need to get a bridge loan or home equity line of credit to purchase the new property.
2. Discuss a Sale and Settlement Contingency
It’s fairly common in real estate transactions to have a sale and settlement contingency, which is essentially agreeing to buy a property only if you can sell your current home. It provides a bit of a safety net in case you find your dream home but haven’t sold your old house yet. However, this type of offer is normally only accepted if you’re in a buyer’s market where the seller doesn’t have other offers.
3. Negotiate a Rent Back Provision
If you end up needing to sell your home right before closing on a new one, try to negotiate a provision that lets you rent the home from the new owners. This is normally a short-term agreement: the new owners agree to let you pay them rent for a couple of months in exchange for a later move-out date, which can give you some extra time to shop around.
4.Ask for a Lengthy Closing
Another trick to avoid trouble when buying your new home is to ask the seller for an extended closing. The average closing lasts about 30 to 45 days, but some sellers may be willing to let you draw out the process for a little longer. This extra time may help you sell your old house and get your financial situation settled before closing.
5. Pay Attention to Local Real Estate Trends
Because selling and buying homes simultaneously is so complicated, you need an experienced agent to help you figure out general market trends. If the number of homes on the market is higher than the number of interested buyers, you can focus on looking for your new property first and getting the sellers to be more accommodating. If there’s a limited number of homes and a large pool of buyers, your best option may be to prioritize finding buyers for your home.
Buying and selling a home at the same time can be confusing and nerve-racking. Trust an Irvine Residential Living professional to guide you through the decisions that can save you both stress and money. From Quail Hill to Northwood, Irvine homes for sale are available on the market. If you’re interested in seeing the latest listings, call one of our experienced representatives at 714-454-6304 and schedule an appointment today.