Buying in today's hot market?
July 25 2018
Planning to sell your home to buy a new one this summer? You're in luck: It's a seller's market. This means you'll likely have multiple bids, and they're likely to be higher than your asking price, which can benefit your concurrent home purchase.
Want smooth, profitable sailing as you sell your home to buy another in today's hot market? These four tips can help:
1. Look for prequalification. If a lender has prequalified the buyer, it shows they're a safe bet to follow through on the sale. On that same note, be sure to get prequalified for your subsequent home purchase.
2. Pay attention to earnest money and down payment. The bigger a buyer's down payment and earnest money deposit is, the more invested they are in buying your home. They're less likely to back out of the offer, allowing for a faster closing. This is essential as you prepare your bid for your new home.
3. Know the closing dates. Different lenders offer different timelines, so closing dates on multiple offers could vary by as much as a few weeks. Remember, a delay in the closing date for your home sale can affect the closing date for the new home you're buying.
4. Negotiate a lease-back. Talk to your agent about negotiating a lease-back with your home's new buyers. This allows you to stay in the home a little longer should you need more time to buy.
Housing inventory is tight, and as a seller you'll be able to price your home at a premium. That means you'll have more money when buying. You can use those extra funds for upgraded amenities or make a larger down payment, which will make your new home bid stand out and save you money in the long run.
Ready to get prequalified for your new home? Get in touch to get started.