Buying
Your Next House!
You have already had the experience
of buying a home for the first time; Now, when you
are looking to move up, there are certain new factors
that you must consider. It’s very important
you take the time evaluate these factors before you
list your home for sale.
Not only is there the issue of financing to re-consider
(do you want to go with the company you have been
with, they might give you a better deal or do you
want to shop for a new lender?), but also the fact
that you have to sell your present home at exactly
the right time in order to avoid the financial burden
of owning two homes or, maybe worse, having no place
to live during the gap between closings.
Most of us dream of improving our lifestyle and moving
up to a larger home. The problem is that there is
usually a discrepancy between our hearts and our bank
accounts. It goes something like this: You drive by
a home that you fall in love with only to find that
it has already sold or the asking price is way too
high. Most homeowners get caught in this hit or miss
strategy of house-hunting even if though they used
a Realtor the first time through. They think that
they have now “figured out the process”
but they do not realize that the process chances with
every transaction. Eventually you realize that your
first real move towards actually moving up is to meet
with a competent agent. Usually your last agent will
have kept in touch with you over the years and maybe
if you are lucky they have even anticipated that you
might be ready to move up. When you meet with them
there are a few things to discuss first starting with
the sale of your house and necessary improvements
to make. How much you will net from your sale will
determine what you can purchase. Look at a few homes
to get a general idea of availability so when you
are ready to buy, you can do so quickly.
If you want to get the best price for the home you
are now selling, there are certain things you must
do to enhance its resale values. The repairs and alterations
don’t have to be expensive. Even minor investments
can come back to you ten-fold in the price you are
able to realize. Some simple first steps include a
new coat of paint in every room and refinishing hardwood
floors or having carpet rooms professionally cleaned.
These minor improvements must be done before the house
is put on the market in order to attain top dollar
for your home.
You should plan to sell before you buy. This way
you will not find yourself at a disadvantage when
seated at the negotiating table with pressure to sell
at a below-market price because you have to meet a
purchase deadline. If you have already sold your home,
you can buy a new one with no strings attached. If
you do get a tempting offer on your home but have
not made significant headway on finding a new home,
you might want to put in a contingency clause (called
a Hubbard Clause) to give yourself reasonable time
to find a home to buy. If the market is slow and you
find your home is not selling as quickly as you anticipated,
another option could be to rent out your home and
put it on the market at a later date. This can be
particularly effective if you are selling a smaller
start-up home. You’ll have to investigate the
tax requirements if you choose this latter option.
Be sure to get pre-approved for a loan before the
process of buying and selling begins. Remember, there
is never a cost or obligation involved with getting
pre-approved for a loan and it will give you a significant
advantage when you put an offer on the home you want
to purchase. A pre-approved buyer will always look
better to a seller (and the sellers Realtor who many
times will not show to people who are not approved)
than one who does not yet have financial backing.
Your biggest decision when buying and selling is
deciding which to do first. Look for “Trade-Up”
programs with your real estate agent. This means that
if you find a new home before your current home is
sold, the agent -or more likely their agency- will
buy your home from you in order to make your move
hassle free. These are still new in some areas and
only the larger agencies will have a program like
this.
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With two transactions to coordinate together and
with all the people involved in buying and selling
homes, the chances of mix-ups and miscommunication
increase dramatically. To avoid this be sure to work
as closely as possible with your real estate agent.
Therefore,
Working with a full-time professional real estate
agent is a must. Choose your agent by asking questions
of them. Find out how knowledgeable they are about
houses currently for sale in your price range and
also of houses that have recently sold. Can your agent
recommend a good lender that has the reputation of
excellent customer service and low rates to assist
your new buyer with financing? A good listing agent
can get your house sold quickly at a great price and
help you find a new home.
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