Realtor Mike Putnam Offers Tips for Selling and Buying a Home
Fairfax, VA, April 18, 2016 (Newswire.com) - Northern Virginia realtor Mike Putnam offers homeowners a few key suggestions if they are attempting to sell their homes and purchase a new one at the same time. Conducting two financial transactions complicates matters but they can be completed fairly smoothly if the homeowner is prepared.
People sell one home to buy another for many different reasons. One of the most common scenarios is the expanding family who has outgrown their current home. Another situation is when the children are grown and the family no longer needs such a large house. People also move from one city to another due to job changes and other conditions. In all of these situations a person may be attempting to sell a home and purchase another property at the same time.
While this sounds complicated to someone who has never been through the process, it happens in real estate all the time
Michael Putnam, Real Estate Agent
According to an article on Mike Putnam’s website, it’s important for homeowners to know what they can and can’t afford to do. Purchasing a second home before selling the first one means they would have two mortgages, which may not work if they don’t have enough income. Lenders won’t approve a second mortgage if the debt-to-income ratio of both mortgages doesn’t meet guidelines.
Selling the home and renting a space temporarily while searching for a new home is another option. The downside is the homeowners must move twice in the transition. A third option is to buy a home which is contingent on selling the current property, so that the homeowner is buying and selling a property at the same time.
“While this sounds complicated to someone who has never been through the process, it happens in real estate all the time,” Mike Putnam reassures homeowners. “You just need to work with an experienced realtor who knows how to navigate the transactions in a way that protects you.”
Because more parties are involved in dual transactions, it’s important to keep everyone well informed. The homeowner may be working with one agent who will handle both transactions on their end, but they will also be working with a buyer’s agent and a seller’s agent for the other parties. Timing is critical to ensure both transactions will happen at the right time, especially when the sale of the home is required to qualify for the purchase of a new property.
Homeowners must look at their situation and decide if they are comfortable with selling their home at the same time as buying a new property. They should learn the market to know what to expect both as a seller and as a buyer. They should also be prepared for delays and other issues that could hamper closing on either end. Once they look at their options, they can decide which one is the best fit for their situation and peace of mind.
Sources:
http://www.realtor.com/advice/buy/buying-a-house-while-selling-a-house/