Selling First

Buying First
It happens. Youre only thinking of buying, and suddenly the right home shows up. Now you have to sell your existing home quickly. Here are some tips to help matters work better for you:

• Try to negotiate an extended closing date (a long escrow). You should always submit the appropriate Addendum that will make the purchase of your next house contingent on a successful closing of your current home. This approach tneds to work better in a slow market, but the approach is certainly worth negotiation time in any market. You never know what may work best for the seller of the home you are trying to purchase.
• Try and schedule the closing date of your current home prior to the closing on your new home. Your mortgage company wlll most likely require that too.  Temporary housing is generally a better situation than two mortgages.
• Take a close look at what the listing price will be on your current home. Make sure it's realistic for the current market.
• When you receive an acceptable offer, ask your Realtor to call the buyer's mortgage company and inquire about the buyer's pre-qualification letter that you likely received at the time of contract submission.  Even though specific information cannot be divulged by the loan officer, your Realtor can often determine from the loan officer's clear confidence or doubting/secretive nature how things truly look for the buyer.  I call it "fence-leaning," and it's pretty easy to see which way the loan officer is leaning. You dont want any surprises that are going to delay things.
• Sometimes you do qualify for two mortages.  Then, if you have already closed on the next home, but haven't sold your existing home, you might consider lowering the price, renting it out, or taking it off the market until the next uptick in the market.

Same Market or Across Country

Generally, if you are selling and buying in the same market area, you may be able to negotiate closing dates that are agreeable, or probably workable, for you.  But, when you are dealing with a cross country move, its a lot more dificult. A real estate professional really comes in handy at this point.  Your Realtor will know how to help you because he/she will know the required documentation necessary -- promulgated forms are quite detailed and specific -- and the various timetables that are ticking internally on the sale.  Of course, documents can be easily emailed, faxed, or sent via overnight courier, and your compounded duties wont be stretched to the limit.  With your Realtor's help, all this will, hopefully, be less stressful.

What About the Money

Make sure you have a clear understanding of your financial situation.  Cash reserves are always helpful, but never more so than during the purchase of a home.  Two to three months is the recommended reserve, but if you don't have this much, talk in earnest with your Realtor to help determine all available options.  The Government has required mortgage lenders to tighten down the qualifying process.  Minimum credit score requirments have been in flux lately.  You will want to be a smart seller in today's market, and you will want to look long and hard at a close offer from someone who is f+lexible about move-in dates.  It can save you money in the long run as carrying charges on a home mount up month after month.  Also, too many moves with storage costs can quickly eat up any profit you may have made in the transaction.