Whether you are looking to buy or sell a house simultaneously, it can get a bit complicated, depending on the market conditions. It is not a complicated matter in terms of coordination and logistics, but due to the risk, the seller of your new home is taking.
You have a wide range of options to tackle the problem, depending on your budget and the level of risk you are willing to take. Let us look at the process of selling my house and buying a new one in Milwaukee.
Buy A Home First Before Selling Your Old One
If you can afford both the houses at the same time, you should find the house that you want to buy first.
Consider Your Financial Position and Loan Options
You might also need a lender to qualify you before you find the new house. It is important that you show that you can afford both the houses to qualify.
This can be done, for example, by showing that you have the six-month payments of both the houses. You should talk to a few lenders and see which home loan options you can qualify for; you should also be able to afford the closing costs and the down payment.
Use Your Own Funds or Borrow Money
To do this, you might need to break into a savings account or borrow money from a lending authority. Using your own funds would mean having to pay no interest, but it does deplete a lot of your savings.
Once you purchase your new home, you can easily move in while putting your old house on the market. If it takes longer than expected to sell, you can always rent it until the market gets better.
Rent Your Home Back After It Sells
You can always opt for contingency, which means that you can ask the people who want to buy your house to rent it back to you for 30 to 60 days. Some buyers might not agree, but this is an option worth exploring. This will give you ample time to move out and move in into your new home.
You won’t have a contingency on the purchase of the new house as its sold already. The only drawback to this plan is the rental deadline, and if your new purchase falls through, you still need to move.
Plan Everything To Avoid Contingencies
Once your house sale is on the verge of closing, you can delay it and make an offer for your new house without any seller’s contingency. After the buyer is approved by their lending service, you can be positive that the sale will be finalized.
Delay the Closing of the House
Once you and your realtor are positively sure about the sale of your house, you can delay the closing of the house you want to buy so that both the deals close simultaneously. The buyer should be willing to delay the sale, but the only risk is the fact that you might need to buy the house still, even if yours doesn’t sell.
Selling Your House First And Then Buying a New House
Least Risky and Most Stress-Free
This is the option with the least risk and is probably the most stress-free one. Here you will find out exactly how much money you have after selling your house as the sale is already closed. You can then reinvest this money into a new house.
Need to Move Out and Find Temporary Housing
The only drawback is that you still need to move out, get either a new place, find temporary housing, and get a place to keep your things.
Some people opt to store all their things in a storage unit while they live at a hotel or with some friends.
Rent Out New House for 30 Days
People also rent out a new house for 30 days or so until they find the perfect house to move next to. This option is the safest but comes with the need to move two times at a minimum.
Buying With A Contingency To Sell
This is the choice of most people as you can put an offer down for the new house, and close in contingency with finding a suitable buyer for your current home. This way, you only need to move once and don’t have to carry two mortgages.
Depends on Market Conditions
Some sellers are fine with waiting, but it also depends on the market conditions. This home sale contingency will also make your offer weak; this is especially uncomfortable when you have to compete with a buyer without any emergencies. In this case, the seller will most probably go forward with the other buyers.
Consulting a Realtor
You can ask the realtor regarding your chances with a home sale contingency.
The house selling and buying process is constant in all scenarios. You can decide which option suits you financially. This will also depend on the amount of risk you are willing to take and the present condition of the market. The small details will vary from person to person, but if you manage things professionally and efficiently, you can make the process a breeze.
The process of selling my house and buying a new one in Milwaukee is difficult, but by proper planning, you can get an awesome deal.