SELLING BEFORE YOU BUY
Make The Sell Before The Purchase
Before we dive into the steps that need to happen, for a successful transition from your current home to your next, let’s clarify some general terms.
What is a Contingent Buyer and/or Seller?
If you are purchasing a home and need to sell your current home first, you are a contingent buyer and seller. There are two reasons why you would need to sell your home first before buying: 1. We are relying on the funds of your current home to purchase your next home. 2. We need to eliminate the debt of your current mortgage before purchasing your next home. Ie – your debt to income ratio is too high to carry two mortgages simultaneously.
So you want to purchase a home, but need to sell your current home first. A successful transition of households is all in the prep. Not only will following this order of operations ease your transition, it will likely make you more money and save your precious time.
- Prepare your current home for sale
That’s right, you NEED to prepare your current home for sale BEFORE you start house shopping. This is the step that most sellers skip because they are so anxious to get out of their house. This is like starting to make cookies without first preheating the oven. You are going to hit a giant road block and potentially miss out on your dream home, if we are not ready to list your home. Why? All contingent offers include a clause that requires you list your home within 5 days of the acceptance of your offer. Trust me, if we aren’t prepared, the marketing and presentation of your home will be subpar at best.
- Marketing your home
Photos, video and specific neighborhood information that are sellable features of your home are compiled and presented online. The professional photos and marketing material is complete when we start shopping for your new home. Why? In our market we will likely be competing against other buyers who are non-contingent (ie they don’t have a house they need to sell first). Showing the sellers that we are ready to list your home upon them accepting your offer, will put them at ease and provide reassurance that your home will sell!
- Start shopping for your next home!
Finally… the fun stuff. 😉
- Write an offer on your next home!
Again, when your offer is presented to the sellers, the professional photos and video will be sent simultaneously. Providing them reassurance that your home will sell and placing you in the running with other non-contingent buyers.
- List your current home
These 5 days are jam packed with things to do. We’ll be coordinating the inspection of your new home, depositing earnest money, reviewing titles… the list goes on. But we are also going to be finalizing the last minute things that need to be done before we formally list your home. Having a plan in place to be out of the house for the first 3 – 5 days is recommended because of the potentially large amount of showings during this time. It is nearly impossible to consistently vacate your house for showings, keep it show ready, and maintain a normal home and work life. Do yourself a favor and have a plan to stay at a short term rental, family or friends house temporarily.
NEGOTIATING PRO TIPS
- On the sale of your current home, request a rent back from the Buyers. This allows you to have occupancy of your (now) sold home, for the agreed upon time (usually 3 to 7 days). Meaning you can move out of your home and into your new home more comfortably.
- If you have somewhere to stay, I strongly advise that you list your home FIRST, receive an offer on your current home and THEN start shopping. Choosing to go this route can save you time, energy, money and heartbreak. Giving you more time and flexibility to choose your next home and give you more options as a non-contingent buyer.
BUYER AND SELLER BEWARE
Buying and selling simultaneously is one of the most involved processes in Real Estate. Working with someone who has experience with doing this and knows the forms well, is critical to protect you on both the sale of your current home and purchase of your next home.
Check out the video series I did with clients who sold their home in Seattle and moved to Tacoma. They underwent this process successfully and tell their story here: https://youtu.be/kQ9sKlbqCBY.