If you’re currently attempting to buy and sell a home at the same time, the weight of juggling two big transactions may be weighing on you. Luckily, there are some tips and tricks to help you streamline the process. Reviewing them will help you determine the best time to list your house or start perusing homes for sale.
4 Tips When Buying and Selling a Home at the Same Time
1. Know What You Can Ask For
If you know anyone buying or selling a home in Cincinnati right now, you’ve likely heard how intense the market currently is. Here in Southwest Ohio, home and condo inventory was down 43% in May compared to the same time last year.1
We’re in what’s known as a ‘seller’s market,’ which simply means there’s not enough inventory to satisfy demand. If you’re both buying and selling in a seller’s market (e.g. moving from Norwood to Oakley), you may sell your home quickly but run into some time roadblocks trying to find your next spot.
A ‘buyer’s market’ is the opposite in that there are more homes than people wanting to buy. You may have your pick of the litter, but your current home could sit on the market for a while.
So, what are you supposed to do? In a seller’s market you can ask for a settlement contingency. Once you get an offer on your current home, put in an offer (with a settlement contingency) for where you want to move next. The settlement contingency says you’ll buy the property contingent on the sale of the one you currently own.
Another option is to sign a rent-back, which essentially allows you to rent your current home from its new owners while you search for different housing. This could last for a day or up to 60 days, depending on the agreement.
There are also options in a buyer’s market. The first is a sale contingency, which is an agreement to buy a home if your current one sells.
2. Use Your Resources
Another possible solution is a home equity line of credit (HELOC). Equity refers to the portion of a property you have an interest in. While you are the homeowner, a lender maintains interest in the property until you pay the mortgage off.
To find your available equity, you must subtract your loan balance from the market value of your home. If qualified, you can borrow up to a certain percentage of this final figure. Check with your credit union or bank to see what you can expect.
If you get into a situation where your home isn’t selling but you’re ready to put an offer in on another one, a HELOC is an option to come up with the funds.
3. Get a Real Estate Broker
If you’re having a hard time navigating the housing market or simply want a little bit of guidance, a real estate broker is the way to go. They have the knowledge and experience to help you plan and decide next steps while you sell and shop for a home for sale. A real estate broker is also invaluable during a seller’s market because they have access to MLS listings. They can help you find homes for sale before they hit popular home search sites available to the general public.
4. Have a Backup Plan
As with any plan, the one you have for buying and selling your home may not go exactly as hoped. Prepare for this by creating a backup plan. For example: You may need a temporary place to live or store furniture and belongings before moving into your new place. Search and vet different options in your area so you know where to turn should the need arise.
Cut the juggling act – buying and selling a home is much simpler with the right approach and assistance. General Electric Credit Union (GECU) can help you get into the perfect home with affordable mortgage loans and home equity lines of credit. Plus, credit union members have access to a licensed real estate broker who can offer expert advice and pricing strategies. Find an amazing home for sale and get a great price on your current property with GECU Real Estate Services!2
1 Cincinnati Area Board of Realtors May 2021 Median Sold Price Increase Puts Pressure on Housing Affordability
2 Real Estate Services, also doing business as the Home Information Network, Inc., is provided through CUSO Corp. – a credit union service organization wholly owned by GECU and is located in GECU’s Reading Road office.