In this crazy real estate market of 2023, if you are a homeowner, you are probably very excited about the equity you are building in your current home! But, if you do decide to sell your home, then you are probably concerned about whether or not you can buy another home! And, if you have kids and pets and a lot going on, the last thing you probably want to do is move twice! So is it possible to buy another home while also selling your current home?
The answer is YES – but you need to have a strategy in place! So whenever I am meeting with my clients, here are tips that I give them to accomplish this goal!
FIND AN OFF MARKET PROPERTY!
It may not be easy to find a property that suits what you are looking for that isn’t on the market right now. But this would be one way to get a home without having to deal with multiple offers and hurried decisions! How to find these types of properties? Your Realtor may be able to help you with that! Identify several different neighborhoods that meet what you are looking for – look at what other homes in the neighborhood are selling for (which lets you know if the neighborhood is in your price point) – then let your Realtor go to work identifying homes in those neighborhoods in which the owners may be ready to make a move! Why look for an off market property? The seller of that home may be more willing to accept an offer that is contingent on you selling your current home; they may not be in a big hurry to move, which will give you time to get your property sold; and they know that if anything happens to your contract, they can always put the house on market and find a new buyer!
MAKE AN OFFER ON A PROPERTY THAT HAS BEEN ON THE MARKET A LONG TIME!
In our current market, homes usually sell in a matter of a few days to maybe a week! But we are now seeing more and more homes that are on the market longer than their market average! And there may be nothing wrong with the house – except possibly the price! So making an offer on a house that has been on the market a little while, you may find a seller who would be more willing to accept your offer that is contingent on the sale of your house!
MAKE SURE YOUR HOUSE IS READY TO LIST!
If you are going to make an offer on a house and you are going to make it contingent on the sale of your house, you need to make sure it is ready to go on the market the moment you have gotten an accepted offer on a house to buy! This means that you will need to have decluttered your current house, had it staged, know what it is to be priced at and had the professional photos taken! Your Realtor needs to be able to press that button to make your listing active in MLS as soon as you are under contract on a house to buy!
PUT IN TIGHT TIMELINES IN YOUR OFFER!
An offer that has very tight timelines will be an attractive offer to the seller, especially if you are competing with other offers! So you need to make sure that all the timelines that are in the offer are tight. Inspections – 10 days max! Appraisal – have it ordered within 24 business hours of ratificaiton! Closing – within 30 days max if possible! And, finally, the home sale contingency – instead of putting in that you will get an acceptable contract within 30 days, why not make it 10 days! This way, you will have been able to complete the inspection within that 10 days and if your home is under contract within 10 days, you have just eliminated 2 contingencies within that 10 day window!
PREMARKET YOUR HOME AS A COMING SOON LISTING!
By pre-marketing your current home as a “Coming Soon” listing, you will be able to do everything EXCEPT allow anyone into your house to see it! That means your Realtor can put out the sign, can put out flyers, advertise it in MLS, advertise it in social media, etc. This will help to build up excitement about the house, possibly get you more showings once it goes active and you may even be able to get a sight unseen offer!
PRICE YOUR HOME CORRECTLY!
This should go without saying that all homes that hit the market should be priced properly! But when you are trying to sell your home and buy another one, you want your home to sell quickly! Your home should be priced at market value, or even slightly below the market value! You want to get a good strong offer right away – and, in this market, you may even be able to get multiple offers!
ASK FOR A POSSESSION AFTER CLOSING!
When you list your home, let your Realtor know that you would like to have either an extended closing date, or maybe a quick closing with a Possession After Closing agreement from the buyer! This will allow you to continue to look for another home if you have not yet found one!
DON’T BE JUST PRE-APPROVED – BE UNDERWRITING-APPROVED!
If you are competing with other buyers for a house, you not only want your offer to be strongest, but you want the seller to know you are a strong buyer! Most buyers will get a pre-approval letter from their lender – you should do one better and have the approval come from the underwriter! This means that an underwriter has looked at your pay stubs, bank statements, investment statements, full blown credit report and tax returns and decided that you are a good risk for the loan. Now all you need to do is find the right house, get a ratified contract and a satisfactory appraisal! This type of approval not only lets the seller know that they have a strong buyer, but you may also be in a position to close within a few weeks of ratification!
As you can see, there are some things that you can do to navigate this 2023 real estate market! But it does take a game plan to make it happen and an experienced Realtor to help! So if you are thinking of selling your current home and buying another home, but have questions, feel free to reach out and let me know! I am here to help!