At any moment in time, we are working with sellers who are also purchasing another home. The question of timing comes up early in our consultations with them. Although in real estate as in life, things can sometimes get tricky, the process usually follows a pretty similar path. Timing may be slightly different if you are considering new construction. If clients don’t have relatives they can move in with or the desire/ability to make two moves, we need to put a plan in place. We certainly don’t want you selling your house and living under a bridge!
What we recommend is this: as you are doing the things to get your house in prime showing condition, begin the initial search for the next home.
First, we can give you a good range of how much you’ll have to work with from the sale of your current house. You can then give that information to the lender you work with to focus in on the price range of the new home you want to buy. You want to be comfortable with both the closing costs involved and the monthly payments you’ll be making.
Now that you’re comfortable with your price range, it’s time to begin your search. By that we don’t mean for the exact home, but try to find areas and neighborhoods where the homes appeal to you and your wallet and are as convenient as possible to the work commute you have. You can look online and get a good initial feel, and certainly we’d be happy to give you a tour of areas or homes that match your desires when you are ready for that step.
When, and only when, you’re seeing communities where you’d be happy, and homes that you love and feel good about the price, is it time to put your house on the market. The reason is that most sellers will not accept a contract contingent on the sale of your house. Also, with a home to sell, you have less leverage to negotiate the best price on your purchase.
As part of the contract we ratify, we can negotiate a HOC (home of choice) contingency for you to find and put a contract on the home you will move to. Generally these are 2 weeks to 30 days depending on your purchaser’s flexibility. Also, we can get a short rent-back so you only have to make one move. Obviously there are many details we’d want to go over and questions you would want answered.
So it goes like this. Get your house ready. Get your comfort level with new homes. Put your house on. Get a contract. Put a contract on your new home. Go to settlement on the current home. Go to settlement on the new home. Move in!