There are several things you can do to figure out how much mortgage you can afford, including calculating a realistic budget before purchasing a home.
When it comes to selling and purchasing a new home at the same time, it helps to be prepared. Being prepared will help reduce stress and make the entire process move along more smoothly.
In This Article:
- How To Manage Stress During Multiple Real Estate Transactions?
- What Coping Skills Can You Use To Deal With Buying And Selling A Home At The Same Time?
- Who Can You Talk To About Real Estate Related Stress?
- How Can You Plan Accordingly For Both Buying And Selling A House?
If you’re in the process of simultaneously buying and selling a home, you may be in for the most stressful experience of your life. In fact, several real estate surveys done both here and abroad indicated that over two thousand people found that buying and selling a house is more stressful than divorce, bankruptcy, a death in the family, becoming a parent for the first time, and even planning a wedding!
Of course, it is not easy, but staying calm will likely help you better plan or prepare for your upcoming home purchase and sale. So, how can you avoid the stress? Here’s a handful of helpful strategies and tips that will keep you calm, no matter what may happen.
When it comes to purchasing a new home, it’s important to be organized and make sure you cross your T’s and dot your I’s. Thus, there are few things you can do as a buyer to keep your stress levels low.
Know what You Are Looking For
For starters, it’s important to know what you are looking for in a new home. This will help you narrow down your search and save you time. Thus, it’s highly recommended that you create a must-have list in order to give your search direction and purpose.
Get Pre-Approved For A Loan
As a buyer, it’s always a good idea to secure financing before you start looking for your future home. Getting pre-approved will help provide additional parameters to your search and will save you from being disappointed because you spent all this time house hunting before getting a better understanding of your budget.
Take Care of Your Finances
Obviously, this goes hand and hand with being pre-approved. You need to take care of your finances to ensure that you get pre-approved. Moreover, you need to be able to save up for a down payment and other home buying expenses.
Sure, you just got done creating a lengthy must-have list, but that does not mean there’s no room to compromise or be flexible down the road. This is especially true when it comes to the smaller things.
Consider Making A Contingent Offer
As a buyer, it may be beneficial for your situation to make a contingent offer on a new home based on the condition that you can sell your old house first, especially if you cannot afford two mortgages right now. A contingent offer would allow you to enter into a purchase agreement stating that you will buy the new home on a specific date provided that you can sell and close on your current home either beforehand or shortly after.
Weigh Pros and Cons of a Non-Contingent Offer
A contingent offer or purchase is obviously ideal for you as a buyer because if you cannot sell your home by the given date, you are not obligated to purchase the new home. Note, this also means the seller is no longer obligated to sell you the house if the condition is not met in time. In fact, the deal becomes null and void. Moreover, not meeting the condition here will likely equal forfeiture of your earnest money or the deposit.
Alternatively, a non-contingent offer will almost always be considered a stronger offer. As a result, a non-contingent offer usually beats out a similar contingent offer. This is because a seller doesn’t want to worry about potential time delays or any hiccups with your financing. Yet, as a buyer in this particular situation, you likely do not want to list your home until you’ve found or at least made an offer on your next house. Consequently, you will need to figure out what works best for your particular situation.
Work with a Reliable Agent
Lastly, you can relieve a ton of stress from the home buying process by working with a reliable agent and lender. Having experts in your corner can help speed up the process as well as make it easier.
At the same time, you need to make room for selling your current home. For many, this can be a tricky balancing act. But if you follow these suggestions, then you should be able to multitask with the best of them.
You always want to start early when you are selling your home. This means prepping your home for sale, making the necessary upgrades and repairs, and shopping for a listing agent ASAP.
Understand Your Timeframe
While you are busy searching for your new home, do not overlook the fact that the first four weeks after listing your house for sale are crucial. Usually, you should be able to receive a few serious offers in this timeframe, which takes us to the next suggestion—be available.
Keep Your Lines Open
When you are in the process of selling your home, you need to keep the lines of communication open for potential buyers. So, it’s recommended that you keep an open mind, refrain from making any assumptions, and try to be as available as possible to facilitate your real estate transaction.
Work with a Dependable Listing Agent
Finally, just as it’s important to work with a reliable agent and lender to purchase a home, working with a dependable listing agent is a must for selling your house. Remember, you want someone with the expertise and ability to maximize your home’s exposure. Furthermore, your listing agent can help protect your interest during negotiations. Note, you can save yourself added stress by finding an agent that specializes in both selling and buying homes.
Have A Thorough Plan In Place
Ultimately, it’s crucial that you have a plan in place. Much of the stress that you’ll experience will probably be the result of poor planning. You may feel stressed if you don’t have enough time to move or if you have to pay mortgages on two homes because your old home isn’t selling fast enough.
Before you get too far into the buying and selling process, talk with a real estate agent and ensure you have a solid plan in place for how you’ll manage buying and selling at the same time. Leave a time and expense buffer for unexpected complications – even if nothing goes wrong, it’s still nice to know you have some room to work with.
But Be Ready To Improvise If Things Go Sideways
There are a number of ways that buying and selling a home at the same time might result in complications. Poor timing might mean you need to move out before you have a home to move into, or it might mean you don’t have the money for your new home if your old home hasn’t sold. Consequently, you need to be prepared to rent a hotel room, take out a short-term loan, or move your belongings into storage if the sale doesn’t go according to plan.
Talk Out Your Problems With Loved Ones
Lastly, in times of stress, it’s helpful to turn to friends and family for a helping hand. Studies have shown that having a strong social support network can mitigate the effects of stress, and even the Mayo Clinic suggests reaching out to loved ones when you feel overwhelmed. Don’t be afraid to ask your friends for emotional support, and whenever you have an opportunity to socialize, take it – you’ll find it easier to handle stress after a fun night out with friends.
Buying and selling a home at the same time is bound to be stressful, but with the right assistance across the board, the above seller/buyer tips, and a clear plan, you can minimize the agony. Call a real estate agent near you to learn how you can successfully buy and sell a home at the same time.
Ready to Apply For a Home Loan in WA, OR, CO, or ID?
Are you curious about mortgages, or are you ready to apply for one to buy a home? If so, Sammamish Mortgage can help. We are a local mortgage company from Bellevue, Washington, serving the entire state, as well as Oregon, Idaho, and Colorado. We offer many mortgage programs to buyers all over the Pacific Northwest and have been doing so since 1992. Contact us today with any questions you have about mortgages.