6 Secrets to Make Your Local Move a Success!
Making a local move? Usually this means selling one home and buying another. Keep in mind, Murphy’s Law is alive and well. If something can go wrong – it probably will unless you know the secrets to a successful move.
The secret to making it all come together in today’s market is coordination. You need to know what comes first, second and third. And you need to know how to proceed if the reality of selling and buying doesn’t quite follow your planned sequence.
Here are 6 tricks of the trade to help you juggle all the pieces of a local move.
1. Get all the facts early:
I can help you gather the critical information you need. Call me first, when you are just beginning to think about making a local move. I will help you determine how much house your money will buy in today’s market so you can move up comfortably. We can even scout the market together for a selection of homes in your chosen price range to see what is available. We’ll make a list of your ‘favored’ home needs so I only show you homes that meet your requirements. Also, do your best not to look at homes that are so big that it causes future cash flow problems, or so small that you outgrow it in a year or two.
2. Make a game plan:
Together we’ll plot the sequence of the selling and buying events that lead up to your move. We’ll also work up an aggressive marketing plan to sell your present home quickly and for the best possible price. You should begin fixing up and making pre-sale improvements, and have the work completed before we put your house on the market. If cash is short, look into an equity loan that is repaid at closing.
3. Sell First:
In most cases, it’s better to sell your present home before signing a contract to buy. Then you are not pressured to accept a below-market offer just to meet a purchase deadline. (Plus, you can buy with no strings attached!) When you do get a tempting offer, you may consider putting a contingency clause in the sales contract that gives you a reasonable time to find a home to buy. Be sure to find out about tax rules if you choose this route.
4. Keep a lookout:
While your present home is on the market, I will help you shop for a lender and get you pre-approved for financing so you have more bargaining power when you bid on your next home. (Seller’s love qualified buyers.) This will help prepare you and make you an educated buyer. It will also make it easier to shop for suitable homes and be more prepared to select your next home quickly once your present home sells.
5. Be flexible:
Things may not go exactly according to plan, so be ready to make changes as needed. If you don’t find the right home in the first neighborhood you look at, look in a second community, for example. Consider moving sooner than your original time line or later if need be. If you buy before you sell, you may need to take out a ‘bridge’ or ‘swing loan’ against the equity in your current home to cover the down payment and closing costs for your new home. Or you may need to take in short term tenants to cover expenses until you sell. If you sell before you buy, sometimes you can rent back the property for a few days or weeks if closing on the new home is delayed.
6. Coordinate closings:
With two transactions, the chance of mis-communication goes up exponentially. There may be 15 to 30 entities involved in the transactions – appraisers, loan officers, underwriters, attorneys, escrow officers, home inspectors, etc. The transactions may be further complicated if 3, 4 or 5 families are stacked up like dominoes so that a hitch with one transaction affects all the other parties as well. The fewer people involved in coordinating your closing, the more effective the process.
Past experience shows that my clients enjoy the smoothest local moves when I work on both sides of their sale and purchase. This way, I can help you get ready for both closings by coordinating all the details for your sale and your purchase. Ideally I will help your move directly from the old house to the new one. Because I keep you informed at every step of the sales process, such as when the appraiser comes to each house, how your loan processing is processed, what the home inspector found, etc. You will find it to be a trouble-free experience. Together I will do my best to help synchronize your move so that you avoid unneeded issues during this process.
Call Scott today for a no obligation evaluation…it’s a great first step!