{"id":1219,"date":"2021-02-01T10:00:50","date_gmt":"2021-02-01T15:00:50","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=1219"},"modified":"2024-04-25T23:20:04","modified_gmt":"2024-04-26T03:20:04","slug":"pulling-it-off-how-to-sell-your-current-home-while-buying-the-next-one","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/pulling-it-off-how-to-sell-your-current-home-while-buying-the-next-one\/","title":{"rendered":"Pulling It Off: How to Sell Your Current Home While Buying the Next One"},"content":{"rendered":"\n
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Thinking about buying a new home? What are the best options\nfor selling one home while buying the next one?<\/p>\n\n\n\n

Here, we present several methods and strategic tips. One of\nthese strategies, or a blend of them, could be the perfect plan for you.<\/p>\n\n\n\n\n\n\n\n

Strategy #1. Stay in your current home while buying the next.<\/h3>\n\n\n\n

You might decide to live right where you are while home\nshopping. The benefit of keeping your current house is the avoidance of temporary\nhousing, so you won\u2019t need to move twice. <\/p>\n\n\n\n

If you live in the home while showing it, the use of virtual\ntours<\/a> can keep distractions on both seller and buyer sides to a\nminimum. As your real estate agent will tell you, now is the time to declutter!\nTake non-essentials out of the house and store them. <\/p>\n\n\n\n

The tricky part is the risk of possibly having to juggle a\nnew mortgage along with your current loan until the right buyer comes along and\nbuys your current home. Not everyone is in the position to do it. If you\u2019re\nunsure, meet with your accountant or, even better, the mortgage specialist who\u2019ll\nguide you through this. Check your income and debts and to determine if you can\nhandle overlapping mortgages for several weeks or months. <\/p>\n\n\n\n

Holding two mortgage loans is not for the faint of heart,\nbut if you have ample funds and selling your current home in a seller\u2019s market,\nit could work. That said, holding two mortgages is a serious risk if your\ncurrent home doesn\u2019t sell as quickly as you hope it will. <\/p>\n\n\n\n

\u261b<\/strong> Planning to buy before you sell? Know how to identify\nand leverage a seller\u2019s market. <\/strong><\/p>\n\n\n\n

If a large number of buyers are\nactive in a given market relative to the supply of available homes, it\u2019s a\nseller\u2019s market. <\/p>\n\n\n\n

To get technical about it, consider the city\u2019s absorption rate.\u00a0This figure is used by real estate professionals, including lenders and appraisers, to determine the speed at which homes sell in the area during a span, for example, of one month. Divide the number of home sales in the month by the total homes on the market at the month\u2019s end. According to Bankrate, an absorption rate of at least 20%<\/a> indicates a seller\u2019s market (that\u2019s 10+ home sales in a month in a given city for every 50 on the market at the month\u2019s end). That\u2019s the best time to sell a home. <\/p>\n\n\n\n

Strategy #2. Move Into a Temporary Residence.<\/h3>\n\n\n\n

Some sellers deliberately sell first and buy later. This\nmakes for an awkward time in which the homeowner will have to live in temporary\nhousing and move twice. For many people, the inconvenience is worth it once\ntheir homebuying goal is achieved. This way they have held only one title at a\ntime and avoided the need to have overlapping mortgages.<\/p>\n\n\n\n

If you chose this route, the map is straightforward. Empty your\ncurrent home, paint the interior in neutral shades, take care of cracked tiles,\nreplace worn trim, and tidy up the exterior. You can even have professionals\nhandle all of this. Today, real estate agencies with concierge\nservices<\/a> will counsel you on the most cost-effective, price-lifting\nrenovations for your market, which tend to include things like:<\/p>\n\n\n\n