When buying and selling Gainesville real estate, the timetable for exactly when these events will happen can be challenging. If you want to sell your Gainesville home and purchase your next one quickly after, you must dedicate time to planning and preparing for smooth and successful transactions. Ideally, you would have your next home ready to move into directly after selling your current home. Depending on the timing, this may not be possible. However, you can work toward a smooth and stress-free buying and selling experience by managing the process using the tips below.
Determine if the market is a buyer’s market or a seller’s market
Your local housing market will influence what will happen when you go to sell your home and purchase your next one. If you’re in a seller’s market, you will have the advantage when selling your existing home. Thanks to historically low inventory, the real estate market has seen numerous bidding wars over the past few years as buyers vie for the limited number of properties available. While the frenzy associated with a seller’s market appears to be waning a bit, the market still favors sellers more than buyers.
While this is excellent news when you are selling your Gainesville home, you want to ensure you receive the highest amount of money possible for your home. One way to do this is to ensure it is ready to hit the market. Be sure to declutter, hire a professional stager, and invest in professional photos and videos of your property. One great thing about this market type is that you are in the driver’s seat as a seller. You can select which offers to consider and reject others with too many contingencies. When your property is appropriately priced and looks great, it will sell quickly.
The opposite of a seller’s market is a buyer’s market. In these market conditions, the housing inventory is higher than the demand for homes. When this happens, the buyers have more control over the real estate market, and selling your house could take much longer. When these market conditions exist, it may be best to wait to find your next home until your current home is under contract with a financially stable buyer.
Analyze your financial situation
It would be great to schedule a closing on both your old home and your new home simultaneously. In this perfect scenario, you are trying to sell your home quickly and purchase a new house within approximately the same timeframe. While possible, prepare for the unexpected. If something happens, you want to have the funds to still close on your new house without having to pay two mortgages for too long. If paying for two mortgages is too much financially, consider including a contingency in your contract. A contingency will allow you to void the contract if the sale of your current home does not occur.
Think about including a financial contingency as well. Doing so would protect you from two mortgages if your new loan depends on selling your old home. Working with an excellent real estate agent who can help you navigate these situations is critical to a successful buying and selling experience.
Negotiate the money and the timeline
All sellers aim to get as much money as possible for their current home while not paying too much for their next home. The closing date can be an excellent negotiating detail. By using a realtor familiar with buying and selling luxury properties, they will work to ensure the closing on both your current home and your new home can happen within the timeframe that is best for you.
Sometimes you can orchestrate a back-to-back escrow account. A back-to-back escrow account allows you to immediately use the earnings from the sale of your home to purchase your new home.
Partner with only a top-tier real estate professional
Working with a highly skilled and experienced Gainesville realtor who can partner with you at every step is crucial for successfully selling your current home and purchasing your next home. Using their expertise, your realtor can assess a realistic price for your existing home and calculate what you can expect to pay for your next house.
You can then determine the equity you have in your current home and how you can apply it toward your new home. Real estate is known to have many moving parts, and working with an agent familiar with all aspects of the buying and selling journey ensures you will easily sell your current home and purchase a new one.
Plan for a safety net
Unexpected situations can arise in a real estate transaction you may not have any control over. Something that was supposed to happen, like an inspection, was scheduled but, for some reason, did not occur. When things like this happen, it is best to have a plan. One way to account for unforeseen circumstances is to have contingencies in your contract allowing you to either void the deal or reschedule the closing.
To offset the cost of carrying two mortgages, consider opening a home equity line of credit to pay for the additional expense of a second mortgage. A line of credit can be an excellent solution for a short-term situation.
Should things not go as planned, you may need to find temporary housing while you and your realtor work out the necessary details. Temporary storage must also be accounted for since you cannot fit everything into your short-term housing solution.
Renting is another option to consider should things not go according to plan. You could rent from the new owners of your home, allowing you to stay in the house until your new home is available. Conversely, you could rent out your current home if it remains on the market and buy your new one ready for you to occupy. The rental income could help offset the cost of carrying two mortgages.