Buy And Sell At The Same Time

Buy And Sell At The Same Time

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Buy And Sell At The Same Time

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Buy And Sell At The Same Time

TABLE OF CONTENTS 7

Negotiate Seller Possession After Closing

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Work Out an Extended Closing Period

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Purchase a Spec Home

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Buy Land and Custom Build

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Explore Less Competitive Areas/Price Points

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Submit a Contingent Offer

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Discuss Seller Financing

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Move Into a Short-Term Rental

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Take Out a Second Mortgage

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Buyer Accepted Program

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Negotiate

Seller Possession After Closing

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s properties are being put under contract in record time, it is becoming more common to have buyers allow the sell-

ers to stay in the home they are purchasing after closing. Sellers can remain in the home anywhere from a few days up until a few months to have time to secure their next home. This is an excellent opportunity because now there are no worries about packing up all of your belongings before heading out the door and into another house.

In the current market, possession after selling is a key point for many sellers, so if a buyer can offer them time, it may just beat out the competition. Bear in mind that a real estate closing does not always coincide with the recording of the deed because in some parts of the country, counties are weeks behind in recording deeds. In those situations, closing happens when the money changes hands, the deed is drawn, and all conditions of the contract have been met. In some cities, buyers do not get the keys until the title company has confirmed that the deed has been recorded.

If you agree to any delays in possession after closing, be sure the terms for any rent, utility payments, and other concerns are clearly spelled out in writing. Maintenance and insurance related issues are of particular concern and you should review these details with your lawyer.

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Work Out

An Extended Closing Period

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or buyers who are not comfortable allowing sellers to remain in the home after closing, this can be a great alter-

native. Extended closing is when the buyer and seller agree to a closing date that is pushed out later than usual allowing the seller extra time to purchase their next home. If that’s an important point for the seller, a little extra time may help a buyer stand out from the rest. The question of closing day can be a key factor in the sale.

If this is important to the seller and they are unable to find another home by their new deadline date, then it may help your offer stand out from multiple offers or come across as more flexible than someone else they might have considered before you came along; if not needed at all during this time frame, it gives them some leeway when looking into potential homes right away instead of waiting until after moving day has passed.

A seller could agree to a short extension without a penalty because of all the different parties involved in this process. (If there’s a cloud on the title, or a lender requires hazard insurance, for instance, a seller may not fault the buyer for this.)

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Purchase A Spec Home

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nventory has hit record lows in the current housing market, so another great option for buyers would be to purchase a

spec home. A spec home is a home that the builder started and/ or completed without having a purchaser. If the home is already completed, the finishes are typically set; however, if it is still under construction, you may be able to review choices and potentially make adjustments. This can be a great option for buyers as there is typically less competition, many buyers like the idea of having a brand new home, and financing for new construction is very similar to financing an existing home.

Purchasing a new home is an exciting time, but it can also be scary. You want to make sure the house has what you need and does not have any surprises lurking behind closed doors. This is another benefit of buying spec houses: You can ensure that your dream home becomes reality, which means they’re already finished or close to finished so you will not have to worry about repairs for at least six months after moving in.

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BuyLand & Custom Build

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uyers also have the option to choose their plot of land and build their home from the ground up. For clients who

would like to pick out all of the options from start to finish in their new home, this will be the best option for them. There may be some more steps involved, but the result is truly your vision.

The new home buyer can choose where they would like to build their property and customize the interior while not having to be restricted by any pre-set layouts or designs.

For those who are looking for a more personalized experience, this is an excellent option that will allow you to create your dream home from scratch with no limitations. The Bartos Group can help you understand the process of searching for land. A Realtor can find data on the property’s history, including what it has sold for in the past and insight into future developments that could impact the property.

Compare the listing price with comparable properties currently on the market and those that have sold within the last 8 days.

And, use your appraisal district’s website to track appraised values for the lot and surrounding ones. Your Realtor can watch for trends in value that can give you a clue as to a reasonable offer price.

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Explore

Less Competitive Areas And Price Points

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ome buyers may have better luck by exploring other areas that are less competitive or at a lower price point. By

expanding the search and looking into homes that are a little further out, or in a lower price range, buyers may find more options available and that they get more “bang for their buck”.

Picking the right price range when searching for a new house is important because if you do not, you could miss out on finding the right home. You also do not want to waste time looking at homes that do not fit your criteria because they cost more than you want to pay. The only thing worse than finding your dream home and discovering that the seller won’t bend on price is not finding your home at all because the price range you chose was wrong. Learn how to choose a good price for a home. Real estate agents do not always think about the way buyers search for homes when they accept a listing. By not pricing a home in the right range, sellers might lose buyers because they never see the listing.

As a buyer, you should work with an expanded price range.

For example, if your maximum purchase price is $399,000, you should not set up a property search with an upper-end price point of $399,000. By doing so, you will miss houses priced at $399,950 or $405,000 that you may want to consider.

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Submit

A Contingent Offer

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ith this option, buyers submit an offer on a new home that is contingent, or dependent upon, the sale of their

current home. Though some sellers may be hesitant to accept a contingent offer, it may be a relief for those looking to purchase a home while trying to sell. A top real estate team like the Bartos Group can help you put your home on the market and navigate the tricky waters of how to buy a house contingent on selling yours. When you buy a house contingent on selling yours, it means that you buy the house only in the case that your current home sells. Your agent will add a contingency clause to the terms of the home offer.

Contingencies protect buyers from carrying two mortgages, and they can go in three ways: • 1. You find a buyer for your home, and your contract for the new home moves forward as planned.

• 2. You do not find a home buyer in a specified timeframe (usually 30 to 60 days), the offer and contract for buying the new home is voided. Buyers may return any money sellers put in, and you start fresh searching for a new house.

• 3. The sellers put an addendum into the contract known as a kick-out clause. According to analysts, sellers can keep their home on the market, and if they find a new buyer while you are trying to sell your house, they will give you 72 hours to continue the contract or drop out so they can accept the new offer.

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Discuss

Seller Financing

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nstead of the buyer taking out a bank loan to purchase a property, seller financing is when the seller handles the mortgage

process instead of a financial institution. Instead of applying for a conventional bank mortgage, the buyer signs a mortgage with the seller. This is a less common approach, but viable for some.

In seller financing, the seller takes on the role of the lender.

Instead of giving cash to the buyer, the seller extends enough credit to the buyer for the purchase price of the home, minus any down payment. The buyer and seller sign a promissory note (which contains the terms of the loan). They record a mortgage (or “deed of trust” in some states) with the local public records authority. Then the buyer pays back the loan over time, typically with interest.

These loans are often short term—for example, amortized over 30 years but with a balloon payment due in 1-2 years. The theory is that, within a few years, the home will have gained enough in value or the buyers’ financial situation will have improved enough that they can refinance with a traditional lender.

From the seller’s standpoint, the short time period is also practical. Sellers can not count on having the same life expectancy as a mortgage lending institution, nor the patience to wait around for 30 years until the loan is paid off. In addition, sellers do not want to be exposed to the risks of extending credit longer than necessary.

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Move Into A Short Term Rental

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his option requires a double move. While searching for their new home, a buyer will sell their current home and

move into a short-term rental usually for less than three months.

Though the double move is one of the main downsides of this option, there are benefits. A double-move allows buyers to offer non-contingent offers, to have funds from their previous home available for their down payment, and can take the stress off of trying to find a home quickly before your home sells.

One of the biggest concerns people have with short term housing is what to do with their things. While some rentals require you to bring in your own furniture, many short term options come furnished, or may just be too small to house all of your belongings. If that is the case, you will need to make sure you have a good A/C storage option in addition to your rental. Even if you can bring in your own stuff, you may want to reduce the amount of heavy lifting and store your things while doing a short term furniture rental. Whichever option you choose, make sure you have a plan in place earlier rather than later.

Finding a short term rental can take a little bit of work, so be sure to start your search early. Even if you are not moving for a couple of months, you should be able to find information about availability for your desired move-in period ahead of time. Be sure to expand your search beyond the internet too, and actually call leasing managers with inquiries.

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Take Out A Second Mortgage

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second mortgage is a loan taken out against a home that already has a mortgage. This allows the buyer to use their

home as collateral to gain access to funds needed using the home’s equity. Home equity is the difference between the market value of the property minus the mortgage balance. Depending on the buyer’s credit score and the lender’s requirements, they may be able to borrow up to 85% of the home’s equity. Since a second mortgage uses the home as collateral, the lender’s risk is reduced, so the interest rate may be lower than a credit card or personal loan.

There are two types of second mortgages, a Home Equity Loan and a Home Equity Line of Credit. A Home Equity loan is best suited for buyers who know exactly how much they need to borrow, but in today’s market, a Home Equity Line of Credit may be the better option for buyers who need flexibility.

Your approval for a home equity loan will depend on multiple factors. The value in your home will determine the maximum amount of equity available, and your financial information will determine how much of that equity you can borrow. In addition, your lender will look at your credit score, income, other outstanding debts and additional information.

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Buyer Accepted

With New American Funding

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ome inventory is at an all-time low, it’s a sellers’ market and cash buyers have the advantage. Through New

American Funding we can give YOU the “cash buyer advantage” with their new and exclusive Buyer’s Accepted program!

Through this awesome program, Buyer Accepted will purchase your home with CASH and sell it back to you for the original purchase price, plus a small 2% convenience fee – which is added to the purchase price of the home. It’s THAT easy!

Buyer requirements: •Geographic restrictions – ask Cheryl Stokes, Loan Officer New American Funding, for details •Minimum credit score 700, 90% LTV, 20% down payment with 680 credit score • 3% of the selling price as earnest money The Bartos Group & Cheryl Stokes from New American Funding can help you compete with cash buyers and Win.

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All of these options presented on this guide can lead to success in buying and selling properties in today’s competitive market.

All of these options have pros and cons which should be carefully considered before writing offers on properties. The state of the real estate market in our area is often the biggest factor in timing your home purchase and sale correctly. Knowing what kind of market you are in is important whether you are just moving across town, or if you are moving across the country.

If you are selling in one market and buying in another, you will need to factor that into your timing.

The length of time it takes to buy and sell can vary drastically depending on the local real estate scene. To make sure you have a smooth process, make sure to work with a professional team like the Bartos Group.

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