Many homeowners do not know there are programs and solutions for property owners who want to buy a house before selling their current one. There are a few program options that help you buy a house before selling your current house. By using one of these programs, you can actually remove the contingency offer aspect of buying and selling. Some of the programs let you use their cash to buy your next home, and then an agent will sell your prior home after you move into your new home.
Removing the contingency
Buying a house before selling your current house is a great option during a strong seller’s market. Many sellers during a seller’s market will not accept an offer that is contingent on the sale of your current home. Some of those reasons include the added risk of the buyer of your home not being able to close, putting that seller of the home you are wanting to buy at risk, especially if they need to sell their home in order to buy their next home. Another reason is that there are typically several other buyers who do not have this contingency in order to buy, removing that additional risk. When you have that contingency to buy your next home, it makes it hard when you are trying to buy while trying to sell your current home. Even the most skilled licensed agents have a hard time making a contingent offer work during a strong seller’s market.
Buying a house in itself can be a stressful situation. Just imagine selling a house to the mix, and wow the stress can increase. Then mix the two together and that is just a cocktail for stress. This is where buying a house for cash comes into play. By buying a house for cash prior to selling your current house could remove a lot of the stress that you may have naturally experienced otherwise. A skilled licensed agent would recommend this approach to buy a house for cash before selling your current one to remove that contingency, especially in a strong seller’s environment.
Moving with ease
Buying and selling programs allow you time to move from your current house to your new house and are designed to remove that cocktail of stress. Then after you have moved into your new home, you can sell your current house. This will allow you to calmly pack up your current house and then conveniently move into your new home without being rushed to get out. If you have bought and sold your current home at the same time in the past, then you know the feeling of that last-second rush to magically get out of your current home and into your hew home all in a single day. This is because you typically are not able to move into your new home until it closes, and you cannot close on your new home until your current home you are selling closes. This means part of your belongings are usually packed in your moving truck a few days prior to closing to help move, causing more stress because you may end up needing something you packed away, or you are sleeping on the floor or couch because the couch is one of the last things you are packing away. It can even happen where the current buyer of your home ends up not being able to buy your home at the eleventh hour, which then naturally causes that domino effect of not being able to close on your new home. These are all valid real reasons why using the buy and sell programs could really benefit you in your next real estate purchase.
Paying two mortgage payments
When you sell your home using a buy and sell your home program, you usually will not be stuck with two mortgage payments to pay for at the same time. There are typically fees and costs for using these buy and sell programs. However, the way they have designed them from our research is that you will continue to pay your current mortgage while a fee or interest will accrue and be paid out of the home equity in your current house when you sell your home. How convenient is that?
What if your current house needs work
When you buy a new home before selling your current home, it will allow you time to do any fixing up and cleaning up items in order to sell your current home for top dollar. A skilled and well-experienced licensed real estate agent will have vendor relationships to help you get your house ready to sell. Sometimes with the buy and sell program, you may be able to pay for the repairs or fixing up of the home out of the equity in your current house when you sell your home as well.
Determining equity and eligibility
These buy and sell programs will typically ask your licensed real estate professional about before and after value to help determine how much equity you can use for the repairs, and also make sure you have enough left over to pay for the mortgage payments at the end as well. They will usually want to run your credit to make sure your credit profile aligns with their criteria–kind of similar for when you are buying a house and doing a loan application with a lender. They will usually ask your agent for photos and the condition of the property to help determine the value and potential equity.
Selling your current home needs one of the best licensed real estate agents no matter if you are doing a contingent offer or are buying a new home then selling your current home. A skilled and well-experienced licensed real estate agent should be able to negotiate a strong and high offer that will win you that next home you are wanting to buy.
The Dorrmat Platform helps real estate agents and property owners figure out how to make an offer on a new house before selling their current home. As explained above buying a home while selling your home can be quite difficult if you do not have a skilled real estate agent with a game plan in place to help you accomplish both. This is especially true in a hot real estate market where even financed offers with no contingency offers are losing out to all-cash offers. Selling your old house the Dorrmat Way is the way to go.