First time home buyers have a lot to think about, but mostly because they're venturing into uncharted territory. With the help of a good Realtor®, all of their questions are answered, their fears relieved, and their goals set as they go off to search for their first home together.
As big of a deal as buying is for these property virgins (for lack of a better term), it is a MUCH BIGGER DEAL for second or third timer buyers! Why? Because they not only have a house to buy, they also have a house to sell. And, while the typical North American buyer needs a mortgage, most prefer not to have more than one at a time. Well, let me break it down even more...most are UNABLE to have more than one mortgage at a time because the lender sets out in the terms of their new mortgage that their previous house is sold first. Only those who have enough equity in their current home can afford to buy the next one without selling their current one first.
Accomplishing this is easier said than done. It takes the advice of a pro to set everything up for success in this whole "buying and selling" journey. I've often been asked what the best way is to coordinate the sale of a home and the purchase of the next, in terms of the following:
- the best time of year to make the move
- which should we tackle first; the offer on a the next house or the sale of the current house
- how can we coordinate the close dates on both deals
- what is bridge financing and how does it work
- and many more questions!!
The truth is, there isn't a "one size fits all plan". There are a lot of factors that would change my strategy for each client, such as:
- what is their financial security/stability (amount of equity in their current home and/or ability to pay cash or finance more than one property)
- what type of home do they have to sell and what is the projected days on market based on other comparable sales in their area
- what type of home are they looking to purchase and is it going to be difficult to find
These and many other factors are all considered to help my clients to win in the coordination of the sale of their current home and the purchase of their next. Doing things in the wrong order can cost people literally THOUSANDS of dollars more, and can seriously add a tremendous amount of stress to their situation that could have otherwise been avoided had all of the ducks been lined up in a row.
If you are contemplating a real estate transaction...or two...keep in mind that even if this isn't your first time in the market, the market has changed and so have the methods of doing business You can't rely on the strategies you used ten years ago because today's market is more aggressive and there could be some unexpected pitfalls if you go it alone without the protection of your own representative. It requires a savvy businessperson who knows how to maneuver their way through difficult negotiations because they do it every day.
Don't overpay on a purchase. Don't sell for less than market value. Hire a team of professionals who know how to search out the right properties to show you, market your home appropriately to sell for top dollar, and, make sure your contracts entail all of the terms and conditions to properly protect you.
The Red Carpet Crew can do all of this and more for you, and we're looking forward to hearing from you. Check out the Testimonials on this site to read what other clients had to say about their experience with us.