For us Californians, the answer to the question, “Why should I buy a home here?”…
Both buying a home and selling a home are events that occur in nearly everyone’s life at least once. And while neither is a particularly hard thing to do, they do take some work to do properly. There’s paperwork to be filled out, due diligence to be done, and experts who should be consulted. So it may seem like trying to do both at the same time would take way too much work and coordination. But with some solid planning and the right kind of assistance, buying and selling a California home at the same time is a completely feasible undertaking.
And to make it all go as smoothly as possible, there are additional steps you can take and things you should keep in mind when buying and selling a California home at the same time.
Hire an Experienced Local Real Estate Agent
Bringing on a professional will seriously improve your chances of getting through the buying and selling process with minimal hiccups. And you’ll definitely want to go with someone who’s not only experienced, but experienced in local purchases and sales.
Finding the right person is definitely part of the research process, but go beyond internet searches before you hire someone. Ask friends or family members who’ve bought or sold homes in the area who they worked with in the selling/buying process and who they recommend. And you should absolutely consider talking with several potential agents before you pick one. Having a good one-on-one relationship with your agent is absolutely essential when you’re doing more complex housing transactions.
Arrange Temporary Housing
Unless you can perfectly coordinate the day you close on the house you’re selling with the day you close on the house you’re buying—not to mention the moving of all your things out of one home and into the other—you’ll need a place to stay in the interim. Maybe it’ll just be for a few days, maybe a few weeks, but it’s all but certain there will be a gap of some kind during your transition.
Whether you decide to stay at a hotel, an Airbnb, or wind up crashing with thoughtful friends or family, you’ll want to know where you’ll be living for however long it takes to get into your new home. Another potential option for a short-term stay is to rent your recently sold house from its new owners for a short amount of time. You don’t have to move your stuff—and family—twice, and the new owners make a few extra bucks with minimal hassle. It can be a win-win for everybody.
Consider Taking Out a Bridge Loan
Bridge loans, sometimes referred to as gap or interim financing, are loans that help cover the period between buying your new home and finalizing the sale of your old one. They come out of the equity on your current home and go right into the down payment on the home you’re purchasing.
If the timing between your sale and your purchase is tight—particularly if the purchase comes slightly ahead of the sale—you may want to look into a bridge loan to cover costs while you wait for the money from the sale to come in. That said, bridge loans typically have higher interest rates than most loans. And if you’re still paying the mortgage on your old home, it adds another monthly payment you have to make until the home is sold and the bridge loan is paid off. But still, it’s a handy way to bridge the gap while buying and selling a California home at the same time.
Simultaneous Buying and Selling is Doable
Even in the simplest of situations and calmest of housing markets, trying to buy and sell separate homes at the same time is no easy task. But, as we hope we’ve shown, it can be done. And the best way to do it is with solid preparation and the help of a real expert. Luckily for you, we here at New Way Mortgage are confident in our expertise when it comes to the California housing market, so let’s get started!