Homeowners move from one house to another for a variety of reasons — looking for a new neighborhood, wanting more or less space, taking a job in a new city, just to name a few. However, bridging the space between leaving one home and settling into another brings a specific set of challenges with it. No matter where in the country you’re moving from and to, there are a few key things you can do to make this process easier. And if you’re moving to or from Oxnard real estate, Ann Howarth can help you make a smooth transition.
Tips for buying and selling simultaneously
Be as financially prepared as possible
Before you leap into a simultaneous Oxnard real estate transaction, stop and take a look at your disposable income as well as your cash reserves. You need to assess if you have the financial means to make a down payment on the new house before you sell your existing home. You need to determine if you can afford to pay both mortgages every month if the timing doesn't work perfectly. Map out how long you can maintain two mortgages should the timing not work out perfectly. Consider the possibility that you might even need to lower your home’s asking price to cut down on the number of months you’ll be paying double mortgages. Additionally, not everyone is eligible to engage in a simultaneous transaction. Homeowners with VA or FHA loans aren’t permitted to have multiple mortgage loans open at once.
Buying before you sell
Many buyers need to purchase their new home prior to selling their current home. In most states, offer contingencies afford buyers a way to do this. This contingency means the buyer has a deadline for selling their home to finance the purchase of a new one. Be sure to have your current home ready to list as soon as you’ve signed the purchase agreement for your new home. Be sure to consider the following as well:
Include a contingency clause in your purchase agreement.
- Doing so gives you the freedom to cancel the purchase if your house fails to sell. Additionally, you won’t suffer legal ramifications or lose your deposit.
- Request an extended closing.
- When you make an offer on your new house, ask for 60 days in extra closing time. This will give you additional time to find a buyer for your current house if you need it.
Consider using a cash buyer.
There are many investment companies and instant buyer programs available in 2022. Buyers can sell their homes for cash with an extremely short closing window, some as quick as seven days. The downside to this alternative is that you could receive far less than your asking price and what you might get from a traditional buyer.
Buying new Oxnard real estate before listing your current home for sale means you can take your time when finding something to suit your needs. You also won’t have to find a transitional living arrangement, such as an apartment or an extended-stay hotel, while trying to find a new Oxnard home — and you won’t have to foot the bill for double moving expenses.
Selling before you buy
If you choose to sell your house before buying a new one, a lease-back agreement can be your best friend. A lease-back agreement allows sellers to rent their home from the new owners for up to 60 days after it sells. This will enable you time to find a new home and give a bit of wiggle room to complete the transaction. Additionally, selling before buying can prevent the financial burden and uncertainty of a double mortgage. Plus, you’ll find an easier qualification process for your new mortgage. Be sure to consider the following as well:
Declutter your home.
- Stage your Oxnard home for success by decluttering and depersonalizing the space. This means personal photographs and mementos in your home should be stored elsewhere. Buyers must be able to imagine themselves in your home, and that can be difficult if all they see are decorations from your family or favorite sports team. Additionally, decluttering your home will streamline your moving process.
Forgo certain contingencies.
Potential buyers might up their offers if contingencies aren’t present. Be sure to ask your agent when deciding which contingencies to forgo — you don’t want to lose too many contingencies and open yourself up to being taken advantage of.
Understand the real estate market
It’s important to understand the distinction between a buyer’s and seller’s market when preparing to sell a home. In a buyer’s market, sellers are flexible to buyers’ demands. Houses are on the market longer, and sellers might drop their asking prices. In a seller's market, like we’re in currently, sellers can be picky as to whom they sell to, and buyers must be prepared to offer higher purchase prices or larger down payments to beat out their competition. Navigating the market as both a seller and a buyer takes nuance and experience, but if you partner with the right agent, you won’t have to do the heavy lifting when it comes to research. An agent like Ann will bring their expertise, knowledge, and contacts to the table to help you get the most money as a seller and the best deal as a buyer — getting you into your new home as seamlessly as possible.
Ready to buy and sell Oxnard real estate?
If you’re ready to begin buying and selling homes simultaneously, contact trusted Oxnard real estate agent Ann Howarth for expert guidance, local insight, and the market’s best customer service.