How to Sell Your House to Buy Another

If you’ve decided to make the jump from first time buyer to repeat buyer, you’ll have some sense of how stressful buying a home can be. Well, things are about to get trickier now that you’re going to be paying off yet another mortgage. Unless you’re a house collector or millionaire, chances are you’re going to have to sell your house first before you buy another. In a perfect world, you’d sell your home and close on a new home on the same day, but that’s probably not going to happen. However, you can sell your house and buy another around the same time. Here’s how to sell your house to buy another and not drive yourself crazy while doing so.

Why You Should Sell Your House First

1. You’ll Know How Much Money You Have to Work With

Once you sell your house you’ll have a better idea on where your finances lie and how much you can spend on the new house. Imagine what would happen if you bought a home first and didn’t get as much as you were hoping from the old one. This way, you reduce the risk of digging yourself into a deep hole of debt.

2. Getting a New Mortgage Will Be Easier

Once you’ve sold your home, you won’t have to worry about paying two mortgages at the same time – limiting your options for the new home. Generally speaking, financial institutions are more likely to give you a new mortgage once you’ve cleared the old one.

Tips on How to Sell Your House to Buy Another

1. Improve Your Home

The goal is to sell for profit, so any improvement you can afford to make, such as renovations or remodeling, would improve the value of your home.

2. Pay off as Much of Your Mortgage as Possible

Again, you want to sell for a profit so that the equity in your house can be turned into cash. Add as much as you can to your mortgage payments leading up to the sale and make every cent count.

3. Hire a Realtor

Not only to help sell your house faster but to help you find your new home. It’s never too early to start researching on homes in other neighborhoods. Your realtor will be able to provide you with all the information you need concerning the buyer’s market and the seller’s market, and how easy it’ll be to sell your old house and buy a new one. A realtor will also be able to give you a calculated estimation on how long it will take to sell your house. This will allow you to plan your life accordingly.

4. Negotiate With the Buyer

You may receive an offer on your home before you find a new one. If the offer is reasonable and too good to let go, make an arrangement with the buyer to accept their offer only if you find a new home by an agreed date. For example, if possible, you can ask for 50 days instead of 30. However, this strategy will only work in a hot seller’s market, so be careful.

As a seller and future buyer, it is best to get as much help and information from your realtor on how to sell your house in order to buy a new one. Your finances and the markets will greatly influence the process. However, enough planning, research and a top-notch realtor will help you hold on to your sanity in the process.