Many people buy and sell a home simultaneously, but it’s often stressful as the stakes are high! Most buying-and-selling mistakes are easily avoidable—or at least predictable. Follow these six tips to enter escrow with eyes wide open.
Waiting too long to prep your home for selling
Every home needs a little work before selling. You might need to repaint some scratched walls, fix broken decking, or add grout in a rarely used bathroom. Don’t wait until the last minute to kick-start this process; otherwise, you could wind up in a bind.Think fast and get an agent who will warn you when the market is about to slow down. Contact me with any questions you have.
Skipping the backup plan
When you’re buying and selling simultaneously, the number of moving parts doubles. And if any of those parts gets jammed, it can throw off both transactions.
As an example, what if you can’t move into your new home at the same time you need to be out of your old house?
Keep your emergency fund well-stocked. You may simply need a hotel for a week in a best-case scenario, but you may also find yourself looking into short-term rentals. Have cash on hand—in addition to your down payment funds—to survive the setback.
Buying too big
One of the biggest mistakes that we see that simultaneous buyers and sellers make is the same one that many first-time buyers make: They fail to get pre-approved on their new loan.
Pre-approval is essential because it stops unrealistic dreaming by telling you exactly what size of house you can afford.
Working with too little cushion
You know what price your house should sell for. But what if the market softens? If you’re hoping to use the full sale price as a down payment on another home, move forward, assuming your home will sell for less than expected.
Failing to compromise
Don’t forget you’re not the only human in a stressful situation. That person selling your dream home? And the buyers under contract for your current place? They’re all probably stressed, too.
So keep that in mind when issues come up—for example if the buyers need an extra week of escrow because there was an issue selling their home, or the sellers don’t think they need to fix a leaky pipe for you.
A little compromise goes a long way, especially when two escrows (or more) are on the line.
Using two different real estate agents
Expect this already messy process to get even messier if you’re juggling agents for your listing and buying a new home. Simplify things by using the same agent for both transactions.
I always prefer to handle both sides of your sale and purchase. Having control and insight over both transactions allows me to make sure that we close both homes simultaneously and that you get what you want and need in both scenarios!
You know that I am always here to answer your questions. Call me at 604.892.4428 at any time!