The real estate market is generally flourishing in the Edmonton area, which means many people are interested in selling their homes. However, when you sell your home, you have to find a new one. If you're looking to sell your home and buy a new one at the same time, you will no doubt face some challenges. A few helpful tips can aid you so both transactions turn out successful.
Expect the Stress
It is a no-brainer that both selling and buying a home are stressful situations. Therefore, you should go into the situation expecting to feel stressed. Doing one of these activities is stressful enough, so you should realize that doing both at the same time will double the feelings of anxiety you may experience. You will certainly have a few nights where you lay awake, worrying about being able to sell and buy. Accepting that there will be stress throughout this experience will make it easier overall. You are not alone, as others have been through the same situation before. You can lessen your stress by planning ahead and researching as much as possible.
Meet with an Agent Early
One of the biggest mistakes homeowners tend to make is to think their home is worth less than it actually is. To that end, you will want to meet with a real estate agent as early as possible. This professional can help you greatly so you understand just what your home is worth in the current market. The agent will know the neighbourhood and the market and should give you a home evaluation that takes these factors into account. This will give you a real idea of your property’s worth.
Learn About the Purchasing Market
When you're ready to focus on a home you want to purchase, you'll want to learn the numbers. Consider your needs and how much a prospective new home will cost. You'll also want to know details such as the market itself in the area where you want to move to, how competitive it is and how long you might expect to search for a home. Consult with your real estate agent to learn about it, especially if you're moving to a new neighbourhood.
Consider Financing Options
When you have all the numbers for both selling your home and purchasing a new home, you will have to consider your financing options. Having a very strong knowledge and foundation of finances while both selling and buying a home will benefit you. Get in touch with a lender or mortgage broker who can give you some insight into what you can be pre-approved for. This will also help you figure out what you would need for a down payment. Consider also how much equity you have in your current home and if that equity is available.
Devise a Plan
The best way to have a smooth experience while both selling a home and buying a home is to create a plan that you can see through. If the market is competitive and you are the buyer, you really shouldn't add a clause that states your current home must sell before you can buy. The seller isn't going to want to wait on your home sale for their house to sell unless they're in the same situation as you. But if you're selling in a competitive market you have some negotiation room with your buyer for a longer-term, which buys you time for your own purchase, and time for your seller to sell their home.
The worst-case scenario is this: selling in a slow market and buying in a competitive market. Normally you're going to need the sale of your current home to be finalized before you can buy your new house. This is when you might want to consider selling your home first, moving into a temporary housing set up, and then finding your new home. It's not as convenient, but much less stressful!
Now, there are a lot of variables that can come up, whether you are buying or selling. Each of those variables can affect your next decision so by making a plan and leaving wiggle room for these variables, you can avoid extra stress.
Posted by Terry Paranych on
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