Buying and selling a home at the same time is a complicated process. Here are some practical tips that will help things go more smoothly.
Find an experienced agent
Given the complexity of buying and selling at the same time, you will want the help of an experienced real estate agent. An experienced agent will be able to help you price your home optimally, and will be an expert at timing the sale of your home, negotiating the price, and strategies for buying and selling at the same time. Choosing the listing price is one of the most important functions of a listing agent, and you’ll want someone who really knows the local market.
If you think you are ready to discuss the best strategy for your situation, I'd love to meet up with you. If you want more information about my experience, see here.
Determine if you’re in a buyer’s market or a seller’s market
The steps that you take in selling and buying a home will differ depending on the local market. If you’re moving to a different town, you will be selling your home in a different market than the one you’re buying in. In a buyer’s market, there are more homes up for sale then there are people looking to buy. You may find a new home before you sell your own home. In a seller’s market, there are more people looking to buy then there are homes for sale. You will likely sell your old home before finding a new home.
There is not a one size fits all solution for everyone. You have to determine what works best for you and your situation. Here would be some examples of strategies give the market conditions.
If you’re in a…
Make an offer with a kickout clause (in this case the purchase of the new home is contingent on the sale of the old home).
Request an extended closing. This will help give you time to sell your current house.
Make an offer with an extended closing and trust your house will sell. This may feel risky but depending on your house and financial situation, it can work out very well. Pricing your old house will be very important in this option.
Sell your house first and negotiate a rent back agreement. This will give you sometime to shop for a new house without having to move into a temporary rental.
Know your financial situation
The next step in the process is to take stock of your financial situation. You will want to talk to your mortgage company and your accountant or financial advisor to find out the following information. You’ll want to know how much liquid cash you have on hand, how much equity you have in your home, and what types of loans you qualify for. Ask me for recommendations.
A key part of your financial situation is the value of your home. You will want to find out how much your home is likely to sell for. As part of determining the value of your home, you may want to get a pre-inspection to find out how much work will need to be done in order to sell your home. This is also an ingredient in determining how much equity you have in your home. Equity is the amount of money left over after you take the market value of your home and deduct the amount that’s left to pay on your mortgage. In other words, it’s the amount you’ve already paid toward the current value of your home.
Buy First or Sell First?
Now you have some tips to help you in the process of buying and selling at the same time. But which should you do first, buy your new home or sell your old home? We’ll look at some different scenarios for selling and buying your home in our next posts!
Saving money is one of the main reasons people sell For Sale By Owner (FSBO). It makes logical sense. If a person sells their house for $200,000, they don't have to pay any commissions. If they use an agent to sell their house for $200,000, they will have to pay the commission. This obviously means less profit.
The biggest thing FSBOs overlook is what they can actually get for their house when they sell by themselves vs. with a Realtor. The idea that money is being saved is not only appealing to a home seller, it is also appealing to a buyer looking for a bargain. To analyze this further, let's look at the 4 buyer types and their exposure to FSBO homes.
1. First Time Home Buyers- First time home buyers generally seek as much help as possible. They want to make sure that the biggest purchase/investment of their lives goes smoothly. This is why the majority of first time home owners use a real estate agent. This agent will be using the MLS to find and show them properties.
2. Repeat Home Buyers- The majority of homes are sold with an agent. Most repeat buyers are not only loyal to the agent who sold them their last home but they are likely using an agent to sell their current home. This means the majority of repeat home buyers will be using an agent to find and purchase their home. Again, the agent will be using the MLS to find and show them properties.
3. Relocation Buyers- Relocation buyers generally use an agent because they want a local expert to help them find their next home in an unfamiliar area. Furthermore, the moving can be very stressful and the more they can hand off to an agent, the better. Once more, the agent will be using the MLS to find and show them properties.
4. Investors- Investors will use agents but they will also do a lot more leg work to find themselves a bargain. They are not in a rush to buy and readily throw out low offers. Investors concentrate on areas they can find good deals. This includes foreclosures, bank owned properties, and FSBO. This is why the majority of interest FSBOs get is from investors and the offers are generally a lot lower than they had hoped.
Altogether, the majority of interest a FSBO gets is from investors who are looking to make a profit. Not only will a real estate agent help expose a house to the maximum amount of buyers, they will use their expertise to analyze the market to ensure you are getting the most for your house.
Staging is a great way of getting your house more traffic and sold faster.
Top 10 reasons to stage your home, according to Real Estate Staging Association:
1. Look better than others on the market
2. Sell faster
3. Typically sell for more money
4. Look better in print and internet ads
5. Receive more foot traffic
6. End up on a buyer's "must see" list
7. Are viewed by buyers as "well maintained
8. Are viewed as "well maintained" by Appraisers
9. Are often appraised at a higher values
10. Are "move in ready"
Staged homes spent 83% less time on the market than non-staged homes. If you would like to hear more about what staging your house would look like, call or email Mattias!
Advertising your home by posting pictures online is one of the first and most important marketing steps you will take when selling your home. More and more people begin their search for a new home online and their first impression of your home will be shaped by the quality of your pictures. What many people don’t understand is the prep that the homeowner will need to complete before the photographer begins shooting the property. Below is a detailed checklist of the most common preparations one should do in order to be fully prepared for the professional photographer.
If you are doing preliminary research and want to see how you can further prepare your home for sale, it doesn't hurt to prepare your home for a home inspection. Check out the blog linked below.
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A home inspection is one aspect of selling a home that many first time sellers often overlook. Caught up in the excitement of change, potential for an influx of cash, and the million different hoops one has to jump through, many sellers completely forget the necessity of performing a thorough home inspection. Other sellers simply don’t know how to conduct one. Below is a checklist of the most common items and their accompanying defects to check for when executing a home inspection. While this is not an all inclusive list, it is a fantastic place to start. For those of you that find the list too daunting, be aware that there is the option to hire a home inspector instead. Contact Mattias to get names of \home inspectors he recommends.
According to the NAR's 2017 Remodeling Impact Report, adding a new roof will bring 109% return on your investment.
The NAR estimated that the job would cost $7,500 and would likely bring $8,150 more in a home sale.
45% of Realtors suggest adding a new roof before selling a house. Furthermore, 32% of Realtors stated that adding a new roof helped them sell a house recently.
If you are thinking of listing your home, here are a few steps to help prepare you for success.
Throughout this whole process, try to imagine a buyers perspective. This can be difficult to do but REALTORs and home stagers can help in this process.
If you're reading this, you likely have a house under contract. In the contract, you asked to have a home inspection contingency so that you know the integrity of the house you are about to buy. Your Realtor should provide you with recommendations of home inspectors, but how do you choose which one? Asking these questions will help you find the right inspector.
1. What does your inspection cover?
If you are working with an inspector that is new to your state, is based in a different state, or works in multiple states, ask the inspector to ensure that they are meeting all the state requirements, common standards of practice, and code of ethics. You can even request to see this information beforehand so that you can ask clarifying questions. Also, if you have any specific concerns about the house, make sure you address them with the inspector beforehand.
2. How long have you been a home inspector and how many home inspections have you completed total and in the past year?
A inspector may have a website that lists their history and feedback. If not, feel free to ask an inspector to provide you with this information. Also, new inspectors could be very qualified and be partnered with a seasoned inspector.
3. What is you specialty? Are you experienced in Residential Inspections?
It's generally helpful to have experience in construction or engineering. However, this is not a substitute for experience in residential home inspections. Note, there can be inspectors with more experience in commercial home inspections.
4. Will the inspector also make improvements based on the inspection?
Ask the inspector if their association and state regulations allow them to perform repair work they discover from performing the inspection. However, be aware that this can be a conflict of interest and may be prohibited.
5. When can you preform the inspection and how long will it take?
Frequently, in contracts you have a two week period to request the repairs you want done on the property. This means that you will need to have the inspection completed with enough time for you to develop your requests for repairs. So when scheduling an inspector, sooner is better. On the average single family home, the inspection process will take 2-3 hours. However, this is a good question to ask the inspector.
6. How much does the home inspection cost?
Costs can vary significantly. To help insure you are getting a good price plus high quality service, it helps to get recommendations from your Realtor. Also, it helps to ask these questions to various inspectors so you get a good idea what you are receiving for your money. The U.S. Department of Housing and Urban Development does not regulate inspection costs.
7. When will you provide the inspection report and what will it look like?
Again, speak with your Realtor about the time frame you need to have the inspection process completed by. You want to make sure the inspectors can complete the job within this time frame. Often, inspectors will provide the report within 24 hours. You may also want to ask to see samples of home inspections so that you get an idea of what the finished report will look like.
8. Can I shadow the inspection?
Going through the house you are going to buy with the inspector is an excellent educational experience. The inspector can give expert insight on the house's current condition and how to best maintain the home. If an inspector refuses to let you shadow them, you should see this as a red flag.
9. Are you a current member in a professional home inspector association?
There are a lot of state and national associations that a home inspector could hold membership. You can research or perform whatever due diligence you think is appropriate. You can request to see their membership ID.
10. Are you licensed and do you pursue continuing education programs to maintain your level of expertise?
Recently, all home inspectors have been required to become licensed. So, it is important for you to ask your potential home inspector if they are licensed. In addition to the license, an inspector who is committed to continuing education is likely committed to professionalism. This is especially important when you are dealing with older and unique homes.
In addition to these questions, I am happy to give you my recommendations based on the home inspectors I have used in the past. If you would like my recommendations or have any further questions, call or email me.
If you are interested in getting your house ready for an appraisal, someone is likely applying for a loan on your house. Whether someone is buying your house, or you are refinancing, you will want your appraisal to be as high as possible. So, how does one help get a higher appraisal?
Let me first explain what you can't change. You can't change what your neighbors are selling their houses for. Comparable properties, in your neighborhood are going to play the biggest role in the valuation of your house.
But there is hope! If you want the best shot at your house appraising higher, there are a few tips and suggestions I can offer.
1. Finish off unfinished areas: If you have an almost finished area, it may not hurt to spend the money to finish the area. Increasing your sqft will help add value to your home.
2. Add a Bedroom or Bath: If you have an area in your house that can be changed into an additional bedroom or bath, it is likely worth your time to add value to your home.
3. Stage your house: Just as you want to make your home inviting for potential buyers, make your home inviting for the appraiser. Make every room feel big and open by removing clutter and making sure the area is well lit. You may consider painting.
4. Landscaping: Your yard does make a difference. Take some time to landscape your yard. You can plant flowers, mow the lawn, clear out brush, pull weeds, add a fountain, add a coy pond, etc.
For all of these tips, it doesn't hurt to higher professionals. Contact me for my recommendations.