Buying and selling a house at the same time can be daunting, especially for first-time homebuyers.
For instance, the Sacramento, CA real estate market has recently seen a resurgence, with home prices rising to new heights, especially in California.
As an investor or owner looking to sell your property, it may be tempting to take advantage of the boom and sell now for top dollar. Since many of the homes for sale in Sacramento, Sierra Oaks, and other areas of California are getting above their selling price, people are committed to selling.
However, there are numerous decisions to make, including what type of real estate property you want to buy, how much you are willing to spend on your next home, its location, and whether you should start selling your current house.
But what if you need to buy another house first? What will happen when you put two transactions on at once? Is this even possible? The search for houses in a neighborhood you are interested in alone will require an excellent realtor that knows the current real estate trends.
If you want to search Sacramento, California, for new homes while trying to sell your house at the same time in your old neighborhood— you’re going to need more than a realtor and interested persons to get the job done.
If any of the above sounds like you, you are in luck! This article will outline vital tips to help you make informed decisions when buying and selling a house.
Local Housing Market: Evaluating to Make the Right Decision
According to the Census Bureau, in 2020, there were 128.45 million households in the United States with a median income of $67,521. Of those, approximately 65% are homeowners, and only 35% are renters.
By implication, buying or selling your home is one of the most important financial decisions you will ever make! To get started, you’ll want to know the real estate market you find yourself in. For instance, in a seller’s market, which is the opposite of a buyer’s market, there are many interested persons with agents but fewer homes for sale.
So before making this declaration, it’s wise to take stock of your local housing market—learn about the current trends and evaluate how they may impact your future goals for living arrangements. You might even want to talk to a broker or people with real estate licenses to get a clearer picture.
You can buy your next house in the Sacramento, CA real estate market while selling your current one if you have the appropriate finances and plenty of time to prepare. Done correctly, you can make research-based decisions in getting your dream home by checking all the houses for sale in California.
What if you need more time?
In some cases, you can make accommodation requests to the new owner that purchased your house to allow you to stay as long as needed until you have accessibility to your new property. It isn’t unusual for folks to stay 30 or 60 days after the deal closes.
However, it is always best to have it verified by a realtor with a license that has guaranteed experience in these types of calculations because it often involves rent being collected. Check with our team for more details on how this usually works. We can answer any questions you have about the data used or the accuracy of the final agreement.
If you already have a property picked out in Sacramento, CA, for your family, then we can try to close on the approximate date of your current home being closed. As long as all the data on the report are in order, you can typically skip asking for an extension on vacating your existing home.
Buying a House Before Selling
Before selling your old home, buying a house in Sacramento, California, is quite common and has many benefits. For example, when you buy first, it is more straightforward to get pre-approved for a mortgage and have cash ready to pay the down payment on the new property.
Additionally, there is no pressure because you will have the chance to look around Sacramento, CA, as much as needed for your best options. Whether you are looking for a property based on lot size, price, number of beds that will fit your family, or any other measurements or filters, there are many homes to search through with your real estate agent.
Plus, you don’t have to show your old home to potential buyers unless you choose to do so. Finally, buying a home first can save time and money because you don’t have to move twice.
Pros
- You only have to move once, saving yourself the stress and hundreds of dollars in expenses
- No pressure to find a new property while searching all the real estate options
- You can make an informed decision about selling your current home
- You get the chance to become more familiar with your new neighborhood
- You can get feedback from your real estate agent about homes in California
Cons
- It may be challenging to qualify for a loan with broker services
- High probability of having financial issues due to dual mortgage payment
- Two tax payments and related ownership costs
- Your current home might take too long to sell
Selling a House Before Buying Another
Many factors go into selling your Sacramento, CA home, but you will need to follow some steps for a successful transaction. For example, homeowners must decide how much they want their homes to sell for and talk to their real estate agent for comparable houses to set an asking price.
Another advantage of selling your home before buying another one is that you get rid of all of the costs of owning a second property. This not only includes payments on two mortgages but also taxes and upkeep on two properties (and maybe even two sets of utilities).
Pros
- Allows you more leverage for negotiations
- Simplified financing for a new house
- You aren’t subject to paying two mortgages
- Higher probability of getting a higher price
Cons
- Moving twice
- You could lose the chance to get your dream home
- Depending on the selling status, you may need to wait a while
How to Get Your Home Ready for Sale
Your first step should be getting your current home ready for sale. This means preparing your home for the market. It involves picking out all unnecessary items so future buyers can picture themselves living there. It may seem like an unnecessary inconvenience, but not doing so will cause problems down the line.
Ask your real estate agent for the data on properties that recently sold in your neighborhood. You’ll want more details than just the price, lot size, number of beds, etc. In fact, there are many services your real estate agent can provide, but in the meantime, read below to see what you can do now.
Here are five things you must do before selling your old place:
- Know When You’ll Be Ready To Sell
Before starting any effort with your old house, know your timeframe. Will you need to be out by this time next year? Or do you want the freedom of having some extra time? An answer to that question can determine what you do with your place in the meantime.
- Work With Your Real Estate Agent
An effective real estate agent in the Sacramento, CA area can advise how much work is necessary for getting your house ready for sale. They know what potential buyers are looking for and can help guide any renovations or de-cluttering efforts.
- De-Clutter
Many people hold onto unnecessary items just because they’re sentimental. If you’ve found yourself doing this, it’s time to get rid of them. If a space has too many items in different places, buyers will have trouble imagining what it would look like empty. Some people are more reserved and need to picture their belongings in a specific space, so hire a team of cleaners if you can’t do it yourself.
- Get Your House Painted
Your paint job doesn’t need to be anything special, but it should look presentable. It’s the first thing that most people will notice when approaching your house and can give buyers a good idea of what they’re in for if they purchase it. Ask your real estate agent if it will affect the price, and if so, do whatever is needed to get the best price.
- Do A Deep Cleaning
Having the carpets cleaned and getting rid of any stains on your walls or appliances is recommended, so future buyers don’t have to worry about doing so themselves. You also might want to consider having all rooms painted, not just living space.
You can easily hire a team of professionals that offer services to perform deep cleaning and spot removing. Doing this will help prospective buyers envision how they can use their new house and all its space. When in doubt, ask your real estate agent for recommendations.
Scheduling Services
If you are currently not living in your old house, you can make arrangements with realtors for accessibility to the property when cleaners are scheduled to be there. This way, you are guaranteed to have your home clean with or without your presence needed.
There are plenty of companies that provide these types of services in Sacramento, CA. However, be sure to check with your real estate agent for ones that are deemed reliable and have digital accessibility. Many have provided properties to realtors as references where you can verify their work.
Bridging the Gap Between Selling Your Home and Buying a New One
The primary downside of selling your house before buying another is living in temporary accommodation in Sacramento, CA. After closing a transaction, buyers typically give sellers a week to 30 days to vacate the property.
So, what options are there when you’ve sold your house but haven’t closed a new property yet?
A Rent-back Agreement
A rent-back agreement allows a seller to lease back the property after they have sold it. However, both parties need to understand that some risks are involved in entering this type of accommodation settlement.
Additionally, not everyone will be open to such an agreement during a house purchase. As a result, if you find yourself in a hot Sacramento, CA real estate market, you’d want to seek legal advice before entering into this type of contract.
Keep in mind, unless there is a guaranteed accommodation request in the contract, the new owners have reserved rights that allow them to decide on their own or with your real estate agent as to whether or not this will work.
Extended Hotel Stay
There is always hotel living for those looking for slightly more flexibility than what moving out and back in provides short-term. This is an extended stay option that can last anywhere from 30 days to six months or more.
While the upfront costs are not comparable to what you get for an apartment or condo rental, if you’re planning on staying put for a while anyway, then it’s logical to get something you’ll be happy with. Just make sure there are enough beds for your loved ones and accommodations for anybody with disabilities.
You can always check with your real estate agent or search Zillow for short-term rentals in Sacramento, CA. Some investors have reserved properties for people who need a place to stay while searching for a new home. Check with your real estate agent to see if there are any near you.
Contract Contingency
Buyers looking to purchase a home may have the option of signing a contract contingency when they put in an offer. In layman’s terms, a contract contingency allows a buyer to back out of their purchase if anything unexpected arises during the due diligence period.
The benefit of this clause is that it saves you from paying two mortgages dictates what can cause you to walk away from closing and still get your deposit back.
Final Thoughts
Buying and selling your home at the same time is common among homeowners today. However, the process is sometimes challenging when you don’t have the right resources at your disposal. The information provided and advice above can help ease the process when implemented.
Here at Next Real Estate, we are continuously working with realtors everywhere and have access to all the homes for sale in California. Contact our Realty team of experts for professional advice and find out which services our realtors can provide you when trying to buy a property and sell your home simultaneously.
Call us today or visit us to get started!
