Welcome to the ConsultingRealEstate.com Blog

2019-07-18 11:30:24
How to Sell and Buy a House at the Same Time

Buying and Selling

When you graduate from first-time buyer to second, the process becomes infinitely more complex. “How are we going to do this?” is a common question from homeowners in the market for a new home.

There are several ways to approach buying a home when you currently own one:

  • Put the home on the market and plan on moving into a rental after it sells and before you purchase the new home. This is probably the least stressful option, especially if you can locate a rental that doesn’t require a lengthy lease. The biggest drawback is having to move twice within a relatively short period of time.
  • Keep the current home while you purchase the new one. In this scenario you’ll carry two mortgages until you can sell your current home. Also, financing the new home may be a challenge because your current mortgage payment makes your debt appear higher than it will be once all is said and done.
  • Try to time the purchase and sale to happen concurrently. This is known as a “simultaneous close,” and although it can be (and frequently is) done, it’s a bit of a gamble. Many things can go wrong and hold up the closing of either transaction.
  • If you lack the cash for the down payment on the new home without selling your current home, a bridge loan is a good option. Bridge loans are short-term loans (typically for six months but can be extended) with a slightly higher interest rate than a mortgage loan and higher closing costs as well. This loan bridges the gap between the purchase of the new property and the time the current home sells. Some experts believe that bridge loans are risky while others think they are the ideal solution to the buy-first-or-sell-first dilemma.

Only your real estate attorney or accountant can counsel you on how to approach the situation and which option is the best for you.

 
Blog Archive
2019-09-03 16:38:50
Is your Vegetable Garden ready for Winter

2019-08-30 12:55:42
3 Renovations that Will NOT Increase your Value

2019-08-26 11:18:39
What to Look for in the HOA Documents

2019-08-12 11:59:52
You can Get a Loan for a Fixer Upper

2019-07-27 09:55:28
The Dangers In Over-Improving a Home and How to Avoid Them

2019-07-18 11:30:24
How to Sell and Buy a House at the Same Time

2019-06-03 13:14:28
Update your Bathroom this Weekend

2019-05-23 15:49:32
What is PMI and how do I get rid of it?

2019-05-08 10:24:20
Shopping for a Lender

2019-05-01 10:04:12
Everything you need to Know about Relocating (Part 1)

2019-04-26 08:44:57
The Many Fingers in the Mortgage Pie

2019-04-18 08:20:15
3 Renovations that Will NOT Increase your Value

2019-04-13 12:20:46
2 Aspects of the Purchase Agreement every Seller Should Understand

2019-03-29 10:36:30
Movin on Up

2019-03-20 07:14:33
Writing a Strong Offer

2019-03-18 11:31:46
Buyers Remorse

2019-03-11 06:54:57
Buying a FSBO without an Agent

2019-03-07 10:19:39
3 Ways to get an Amazing Deal in a Buyer Friendly Market

2019-03-04 09:41:41
4 Characteristics of a Seller

2019-02-24 16:42:06
Everything you need to Know about Home Warranties

2019-02-18 12:10:41
3 Common Home Buying Myths

2019-02-14 18:49:45
3 Things to Know about Buying New Construction

2019-02-10 22:05:54
3 Important Aspects of the Purchase Agreement

2019-02-08 18:29:13
2 Tips for the Luxury Home Buyer

2019-02-02 15:10:26
2 Things to Know about Home Inspections


Comment on this Article

Your Name:
Your Email:
Comments:
Verify:  Please enter the numbers shown to help eliminate spam.