Real estate investing has various benefits and challenges not associated with other investment vehicles. There are specific tax codes made just for those investing in real estate, whether they are commercial or residential.
Planning to sell your home and move to a new one? If so, you must be well-prepared for these two challenging tasks to make your work easier as well as get the best value for your property.
Today, it is easier to sell a home even without getting help from a realtor. However, things are quite challenging when buying a house. In fact, if you are not careful, you can plunge into a large financial mess in your quest to buy a house.
The last thing you want is to get stuck with two mortgages; for your current home and the new home. Read on for some tips you can follow to make the house selling and buying process easier.
Can You Buy and Sell a House on the Same Day?
By working with a professional realtor, you may be able to close a house sale and buy a new one on the same day. However, this will require the timelines of all the parties that will be involved in the transaction – you, the buyer, and the seller – to be aligned. So, in essence, selling and buying a house on the same day all boils down to luck.
In most cases, closing a house sale takes longer than expected. For example, the home inspector may identify things that need to be repaired for your home to sell quickly. On the same note, the prospective buyer may have difficulty getting approved for a mortgage to buy your house.
Therefore, you shouldn’t really bank on selling your house and buying a new one immediately. Rather, you’d want to have a plan B to make the time between the closings as short as possible.
When you are selling your home, you have various options that can make your move easier. For example, you can draw a rent-back agreement with the buyer, which will allow you to remain in the house for two to three months after closing the sale. In return, you can offer the buyer a lower selling price for the house.
A rent-back agreement can reduce the pressure of moving to a new house, and leave you with more time for house hunting.
Prepping Your House Before Selling It
Here are some steps you can take to prep your home before purchasing a new one:
Plan Your Schedule
Selling and buying a new house almost immediately is a challenging task. However, you can hire a professional to make your work easier.
Start by asking an experienced real estate agent that understands the intrigues of buying and selling a house in your area. The agent can explain the real estate trends in your areas, which can indicate how long your home will stay on the market and the amount it is likely to fetch.
When you understand the real estate trends of your local market, you’ll know the timeline to expect, how much you can afford to pay for a new house, and whether you’ll be able to move at once.
Prep Your Home for Sale
The next step is preparing your home for the market. Follow the tips below:
i) Find a Professional Realtor
Interview different real estate agents that can help you with both selling your home and finding a new one to buy. You need an experienced agent that you can trust. The agent should have a proven success record in handling the size of the transaction that you would be involved in.
Ideally, you should hire a local real estate agent rather than one from out-of-town. Local agents are in touch with the happenings of the local industry and may have access to house gems that out-of-town agents wouldn’t know about.
ii) Get Your Home Inspected
Get a reputable home inspector to evaluate your home and fix anything that can help to improve its value when listed. You can also inspect the home on your own to save on the inspection time as well as money.
Get the House Ready for Sale
At this stage, you should no longer be attached to your home. You’ve already decided to put it up on the market for sale. Get the house professionally staged to create an inviting atmosphere. Staging the home can make or break a deal when prospective buyers come for a house visit.
Also, get the house smelling nice and clean. You may want to hire professional move-out cleaners to get the house sparkling.
Finally, don’t forget to improve the curb appeal. Your home should look nice on the outside for it to generate interest when listed on online real estate portals.
Price the House Right
The current real estate trends should help you know how much prospective buyers would be willing to offer for your home. If you price the house too high, most prospective buyers will pass it without taking a second look.
You may be emotionally attached to your home, without knowing, and the price is too high. However, if you really want the house to sell fast, you have to price it right. Consult a real estate agent to research and find out how many homes that are similar in size and design to yours are selling in the area.
With a little help from a professional real estate agent, patience, and some grit, you will sell your home in no time. Follow the guide above to prep your house for selling while planning to buy a new one.