Buying and selling South Lake Tahoe Real Estate at the same time? Being a repeat buyer is so exciting, but if you don’t have an endless supply of money, you may need to sell your current property before, or even while, you find a new one. While some folks are fine with paying two mortgages for a bit, the majority would prefer it if they didn’t. Here is what you need to know about listing and buying at the same time and how to make both go as smoothly as possible.
Know the Market
Before you embark on either journey, you NEED to know what is happening in your current real estate market. Hiring an experienced South Lake Tahoe Realtor that is backed by a proven track record is the best way to find out what is happening in the neighborhood you are selling in and the areas you hope to purchase in. Once you enlist the help of a qualified pro, you will find out if the market is in favor of buyers or sellers and then come up with a strategy that will help your South Lake Tahoe real estate move quickly while also creating competitive offers that sellers will find enticing. In a seller’s market you can rest assured that your property will likely move fast. In a buyer’s market, you will have a lot of competition and it may take a while to sell. When time is of the essence, each step you take needs to be methodical and well executed from pricing appropriately to making sure all your ducks are in a row when it is time to put in an offer.
Know your Finances
If you have to sell first, you may be stuck paying rent temporarily or couch surfing. You can request the option of a rent back agreement where you negotiate being able to remain in the property for a short amount of time in exchange for paying the new owners rent or offering a lower list price. This relieves some pressure on finding a temporary new home while taking the time to also find your long term new home. IF you are buying first, your South Lake Tahoe Realtor can chat with you about some other options to alleviate the financial stress that can come along with that. You can do a bridge loan which allows you to own 2 South Lake Tahoe homes for sale at the same time. This is a great option if you plan to choose the funds from your first home towards your second home. It basically functions as a short term loan that needs to be repaid when you sale your first property. The other option is incorporating a contract contingency where buyers can request that the purchase of their new home be dependent on the sale of their old home. If you are in a seller’s market, this isn’t considered the best option. If you are in a buyer’s market, however, where you have some time, this could be a good option depending on a few factors. Regardless, know what you can and cannot do with your money so you don’t dig yourself in to a whole or stretch yourself too thin.
Plan Your Schedule
Not sure whether to list first and then buy or buy first and then list? Both options have their pros and cons. When you list and sell first, you usually have an easier time getting a better mortgage. However, you also have to find a place to hang your hat in the meantime which means spending money on rent or moving in with relatives. Buying means moving is a lot easier but not only does it mean double housing payments, it can also throw off your debt to income ratio which is pulled when applying for a mortgage. Chat with your South Lake Tahoe Realtor in depth on which path is the best for you. As they know the market the best, they can properly advise based on your personal situation.
Don’t Make a Rushed Decision
Your home may have sold but you can’t find a property that fits your needs and budget OR you may have found your dream South Lake Tahoe real estate but your current home is still holding its place on the market. Whatever you do, don’t allow fear or anxiety to cause you to make a knee jerk decision. This is a big financial investment which you should never feel like you were forced into or come to regret later on. As long as you work with a Realtor in South Lake Tahoe who you know has your best interest at heart, you should feel confident that while dual transactions come with a lot of nuances, you will be happy in the end.