Selling a house can be very fun and exciting. The thought of living in a new home conjures a feeling of fresh beginnings and accomplishment. At the same time, it can be stressful and time consuming. There are disclosures to sign, repairs to make, and of course the house needs to always be ready to show. Often times individuals who are selling their house become so excited they neglect to plan how to structure their move. Here are some tips that will make the transition from your sold house to your new home much easier.
If you want to sell your house and buy a different home, it is very important that you meet with a Realtor to get an opinion of value. The Realtor will let you know what the house is worth and you can decide if you are ready to move forward with the sale of the property. The next step will be to contact a lender.
Once you are armed with the value of your house, you can relay that information to you lender. He can outline what price point you can afford on your next home and what you will need to do to qualify for a loan. It is not a bad idea to meet with a lender prior to your house going on the market. In order for the lender to provide you with accurate information he will need to review your financial health. Sometimes it can take weeks to provide the lender with necessary documents. Nothing is worse than unpacking mid-move because you can’t find the documents your lender needs.
The ideal scenario is to move from your current residence into your new home seamlessly. One way to do this is to make offers that are contingent on your home selling. Not many sellers will accept offers with such a contingency. To increase the likelihood of sellers accepting this contingency, you will want to already be in escrow on the sale of your house.
Another way to make a smooth transition from your current house to your new one is for your Realtor to negotiate a longer escrow on the sale of your current home. For example, negotiate a 45 day escrow on your current residence and plan on a 30 day escrow for your next home. That will give you roughly two weeks to find your next home and get it under contract.
Remember though, sometimes things don’t go as expected, so it is a good idea to have a backup plan in place. Contact apartment complexes and property management companies in your new zip code and ask what they have available on a month to month basis. This way, if you can’t find a home in time, you know you can rent temporarily. It is also wise to look into the cost of storage units. If you can’t fit everything into an apartment, the overflow can be safely kept in storage.
The best way to prevent last minute stress is to PLAN AHEAD. Meet a Realtor and a lender prior to listing. Moving is hard work. With a little planning and foresight, the situation can become less taxing and far more enjoyable.
John Jennings, III
BRE# 01982171
