Real estate ownership can open many doors for investors and homeowners, but it comes with the price of diligent planning and financial discipline. As if buying or selling a home separately wasn’t enough work, some ambitious real estate investors are interested in buying and selling at the same time. If this sounds like you, then planning and consulting with an experienced realtor is a must. Read on for guidelines on how to sell your home and buy a new one simultaneously with grace and style.
Getting started
Financial planning
One of the foremost considerations for many real estate investors will be determining how to finance a purchase while still trying to close a sale. There are financial products and services designed for just such a situation. In particular, a bridge loan may help you finance a home purchase with funds that will ultimately be derived from your sale, even before the sale closes.
As experienced home buyers know, getting preapproved for a mortgage is a great step to take so you can approach your purchase confidently. In some cases, there may be a clause in the purchase agreement that makes fulfillment of the contract contingent upon successful financing. A home sale contingency can allow for the closing of your purchase to be contingent upon your successful sale. Ultimately, you can discuss with your realtor and loan officer to better understand the steps you will need to take in financial planning.
Although realtors are not financial advisors, they can assist with basic financial considerations, property valuations, and mortgage lenders. As you begin your financial and logistical planning, use The Carin Whybrew Project’s home valuation tool and mortgage calculator to gather preliminary estimates
Staging and storage
If you are buying and selling at the same time, you will not have the advantage of being able to move your belongings to your new home prior to selling your old one. Even if you choose to stage your sale home with your own furnishings, you will likely need to secure a storage space to store additional belongings that aren’t appropriate for staging. Real estate professionals generally advise that you remove personal and sentimental items from the home. This “depersonalizing” step protects your personal belongings and avoids giving prospective buyers the impression of being in a stranger’s home, as opposed to their own future residence.
In spite of the inconvenience it may cause, you would be well-advised to stage your home when preparing to sell it. As many realtors will attest, staging can help a home sell faster and for a higher price. Further, some sources also claim that financial investments in staging tend to have a profitable return. At the very least, you should put some effort toward staging the main portions of your home, including the living room, kitchen, and master bedroom. You can keep it simple, but consider the benefits of investing in staging, especially if you are selling a high-end or luxury property.
Using one realtor for both transactions
Choose a qualified realtor
As you proceed with planning your Lansing area real estate sale and purchase, hiring a qualified realtor should be one of your top priorities. Ideally, your realtor should be equipped to advise you through the transactions. Carin Whybrew is a Michigan real estate agent who leads a team of talented and experienced realtors. Carin and her partners can facilitate your home sale, purchase, or both as needed.
Review The Carin Whybrew Project’s portfolio of listings to see the caliber of real estate that the firm lists and purchases. Reach out to a member of Carin’s team when you are ready to take the leap into buying and selling your home.
*Header photo courtesy of The Carin Whybrew Project