Selling your current home while purchasing a new one can be a complex process, especially if you’re doing both simultaneously for the first time. Here is a helpful guide of knowing what to expect.
**Pro Tip: Stay organized and maintain open communication with your Realtor to ensure both transactions go as smoothly as possible. Your Realtor is your guide and advocate every step of the way.
1. Assess Your Financial Situation
- Determine Your Budget: Evaluate your finances to understand how much you can afford for your new home, considering the proceeds from your current home sale.
- Get Pre-Approved for a Mortgage: Secure a mortgage pre-approval to know your borrowing capacity and show sellers you’re a serious buyer.
- Evaluate Bridge Loans (If Needed): Consider bridge financing if you need temporary funds between selling and buying.
2. Sign a Listing Agreement and a Buyer Agreement
- Listing Agreement: This contract officially makes your Realtor your representative for selling your home. It outlines the listing price, commission, and services.
- Buyer Agreement: This contract outlines your Realtor’s responsibilities in helping you find and purchase your next home. It ensures they are legally representing your interests.
3. Prepare Your Home for Sale
- Declutter and Stage: Clean, organize, and potentially stage your home to make it more appealing to buyers.
- Complete Repairs: Address any maintenance issues or improvements that could enhance your home’s marketability.
- Professional Photography: High-quality photos will help attract more buyers online.
4. Start House Hunting for Your New Home
- Define Your Criteria: List must-haves and nice-to-haves for your new home, including location, size, amenities, and budget.
- Attend Showings and Open Houses: Begin viewing properties with your Realtor that match your criteria.
- Evaluate Potential Homes: Consider factors like neighborhood, commute, school districts, and future resale value.
5. List Your Home on the Market
- MLS Listing: Your home is listed on the Multiple Listing Service (MLS) and other platforms.
- Marketing Strategy: Your Realtor will promote your home through social media, email campaigns, and open houses.
- Showings: Keep your home tidy and available for showings to attract potential buyers.
6. Make an Offer on Your New Home
- Identify Your Ideal Property: Once you find a home, work with your Realtor to draft a competitive offer.
- Include Contingencies: Common contingencies include selling your current home, financing approval, and home inspection.
- Submit the Offer: Your Realtor will negotiate on your behalf to secure favorable terms.
7. Receive and Negotiate Offers on Your Current Home
- Review Offers: Evaluate each offer with your Realtor, considering price, contingencies, and buyer qualifications.
- Negotiate Terms: Accept, reject, or counter offers to reach mutually agreeable terms with buyers.
- Accept an Offer: Sign the purchase agreement once you agree on terms.
8. Coordinate Closing Timelines
- Align Closing Dates: Work with both the buyer of your home and the seller of your new home to synchronize closing dates as closely as possible.
- Monitor Progress: Track both transactions to ensure inspections, appraisals, and financing proceed on time.
9. Handle Contingencies for Both Transactions
- Home Inspection for Your Sale: Address issues raised by the buyer’s inspection of your home.
- Home Inspection for Your Purchase: Complete the inspection on your new home and negotiate repairs or credits if necessary.
- Appraisal: Ensure the appraisals for both homes meet lender requirements.
10. Finalize Financing for Your New Home
- Secure Your Mortgage: Complete the mortgage application process for your new home.
- Review Loan Terms: Understand your loan terms, interest rates, and monthly payments.
- Lock in Your Rate: Finalize your interest rate to protect against market changes.
11. Prepare for Closing
- Title Work: Ensure clear titles for both homes with title companies or attorneys.
- Review Closing Disclosures: Examine all final costs, including taxes, fees, and commissions for both transactions.
- Arrange Moving Logistics: Plan your move, including packing, hiring movers, and setting up utilities at your new home.
12. Attend Closing Meetings
- Close on Your Current Home: Sign documents to transfer ownership and receive your proceeds.
- Close on Your New Home: Sign mortgage documents, pay closing costs, and receive the keys to your new residence.
- Transfer Ownership: Ensure all legal documents are properly filed and ownership is officially transferred.
13. Celebrate Your New Home!
- Move In: Settle into your new home, unpack, and make it your own.
- Notify Relevant Parties: Update your address with banks, utilities, and other services.
- Enjoy Your Success: Celebrate successfully selling and buying a home at the same time!
