Buying and Selling Real Estate at the same time.
Or on the road to being a "Contingent" basket case.
The family is growing, kids are getting bigger, add a couple of pets and busting at the seams has already started. But wait, in order to buy you need to sell. The “Contingent” basket case feeling begins to crawl into your life.
How does this work? What do I do first? Am I putting the apple cart infront of the horse?
Once the decision is in motion, You will need to go into the buyer mode. First and always, Get your finances in order. Get pre-approved for a loan. You need to know your buying power. What is your current home worth, How much equity is there for the purchase? Do you need or want to pay off some debt with some of the equity from the sale of your home? Where do you want to put down roots? All these questions, of course, will always lead to more questions. Therefore, having a clear picture will take away a lot of frustration.
Contingent definition: Subject to Change; occuring or existing only if certain events take place.
When your home is listed, the agent will let everbody know that the sale of the home is contingent upon the seller finding a replacement home and both escrows closing CONCURRENT of each other.
Breakdown of the process:
I can not emphasize this enough…Make Sure You Assemble a Well Seasoned Team. What I mean, is make sure the key playing, you Realtor, has a proven track record of doing multi sales in one. There is so many moving parts in sales that can involve 2,3 or even 4 homes that are contingent on each other closing. Your Realtor is going to give you a realist listing price, which will give you a realist net.
LIST YOUR HOME
Once your home is listed, you need to start looking for your replacement home. Most of the time, the sellers will not even entertain an offer if your home is not listed. You will have an even better chance of an accepted offer if your home is in escrow. What, in escrow. Yes, you have time to secure your new home purchase when escrow is opended on your home sale.
It is Always advisable to use the same Realtor selling your home to buy your home. This will certainly help the process go smoother.