Selling your current home while buying a new one can be a daunting endeavor, especially in a dynamic real estate market like Northeastern Wisconsin where many people are moving in to the area. With a strategic plan and a team of real estate professionals you can trust, you can successfully navigate this dual process.
To learn more about successfully navigating this process, keep reading for tips and considerations you will want to keep in mind.
Assess Your Financial Situation
One of the primary challenges in selling and buying real estate simultaneously is financing. Before embarking on the journey of selling and buying a new home, it's essential to have a clear understanding of your financial situation. Start by determining your budget for the new home and assessing your current home's value. Consider consulting with a real estate agent to get an accurate estimate of your home's market value in Northeastern Wisconsin.
Additionally, review your credit score and financial documents to ensure you qualify for a mortgage if needed. Having a solid financial foundation will put you in a stronger position when negotiating both the sale of your current home and the purchase of a new one. Many people will need to make a contingent offer, meaning their financing for the new purchase depends on the sale of their current property.
f you need a mortgage to purchase your new home, secure financing pre-approval early in the process. Having pre-approval in hand demonstrates your seriousness to sellers and can give you a competitive advantage in Northeastern Wisconsin's competitive market.
Choose an Experienced Agent
hoosing the right real estate agent is crucial in Northeastern Wisconsin's competitive market. Look for an agent with local expertise and a proven track record of successfully managing simultaneous home sales and purchases. They can provide valuable insights into market trends, pricing strategies, and help you navigate the entire process efficiently.
Pay Attention to Ideal Timing
While you may not be able to time your sale and purchase ideally, it's best to pay attention to seasonality in the market and time your transactions as best as you can. In Northeastern Wisconsin, the real estate market can be particularly seasonal, with certain times of the year being more favorable for buyers or sellers because of school schedules, weather, and other factors. Spring and early summer are often busy times for both buyers and sellers, but competition can be fierce. In contrast, the winter months may offer fewer options but potentially more favorable pricing.
Consider Creative Solutions
Getting the timing to line up exactly between your simultaneous transactions is difficult, and sometimes impossible. When buying a new home while selling your current one, it's important to have a contingency plan in place. You may face challenges with timing, such as closing on your new home before selling your old one or vice versa. Discuss these scenarios with your real estate agent and consider options like rent-back agreements or temporary housing to bridge the gap.
Greg Dallaire of Dallaire Realty says, If you can't secure your ideal timeline, like closing on your new home a week before closing on your existing home so that you have a window for moving, consider one of these creative solutions:
- Rent your home back from your buyer until you close on the new home
- Ask for a different escrow period, either longer or shorter
- Pack and move into a storage unit and live in a short term rental or with family
With the right financial preparation, expert guidance from a real estate agent, careful planning, and some patience, you can successfully navigate this complex process and achieve your real estate goals in this vibrant and competitive market.