With the year 2020 now behind us and the vaccine distribution now in full gear, 2021 may seem like a good time for you to consider making some serious moves in the housing market. After all, most real estate experts would agree that, following the serious blows to the market in 2020 due to the pandemic, the market is now slowly recovering and going back on track.
In Dallas specifically, the numbers show home prices have been having steady gains over the past couple of months. At the same time, fewer and fewer people are actually listing their homes or selling homes, which may explain the gains that are happening.
Regardless of what your reasoning or goals may be, buying a house now may not necessarily be the better move as opposed to selling, considering that the current housing market trend now leans more to sellers than buyers.
However, the fact of the matter is that selling is ideally and possibly a good move now, too. This means that, with proper knowledge, timing, and execution, you could have yourself move into the new home and, at the same time, sell your old home with little to no problems.
How you can go about doing this requires no magic formula or some flashy series of moves. On the contrary, with proper guidance, almost any prudent person can achieve this balancing act with little to no risk on their finances.
Allow us to have that opportunity to be that guide. Here is some useful knowledge that you can use to sell your home and buy a new one simultaneously.
1. Perform a Self-Assessment
At the outset, there are basically two important moves that you will be doing:
- buying and selling
These are not simple tasks.
Either one can ruin your financial situation if you go forward without thinking and considering whether you can afford to do so in the first place.
It goes without saying, therefore, that assessing yourself is absolutely crucial before even considering buying and selling in the housing market. True, the market may be good now, but whether you can actually play in the market is another story, entirely.
Here are some things that you should ask yourself:
- What are your current short-term and long-term debts?
- Do you have enough savings to cover unexpected twists that may come along the way?
- Are you in good standing to be eligible for credit or loans?
- Is your family currently financially secure?
Remember that, for the most part, buying and selling at the same time is something that you most likely can only do once. Make sure that before you consider making that decision, be aware of your strengths and limitations.
2. Study the Market
Always do your homework before following a course of action or a plan. At the end of the day, no matter how many people you contract to assist you, it will still be ultimately on you. Be prudent and extra careful as you study the market and prepare to buy and sell.
3. Consider All Financial Options Available to You
The best case scenario for everyone looking to buy and sell a home at the same time would be to have your old house sold and then use the funds from that sale to buy your new home in a seamless and expedited manner.
This, of course, is easier said than done. There are many different things to maneuver through when making a housing transaction, like:
- Paperwork
- Processes
- Timeframes
Fortunately, there are financial options for people looking to do this kind of housing exchange.
Bridge Loans
One option is a bridge loan. A bridge loan is a short-term loan that enables homeowners to pay off their new home. When the old home is sold, the proceeds are then moved to pay the said bridge loan.
Note: These kinds of loans, however, have high-interest rates, so be wary.
To be safe, consult a financial expert or even your local bank about some of the financial options that are available to you in this kind of situation.
4. Consult a Real Estate Professional
At the end of the day, consulting a real estate professional can be your blessing in disguise. Chances are, this real estate professional will be more familiar with the transaction process of buying and selling at the same time.
Note that you are not necessarily contracting them to do the entire process for you (though you can if you want to). You are simply asking them for advice.
5. Make Sure That Your Papers Are In Order
Try to make sure that the terms, dates, and rates of your papers are correct and in order. A missed day or two can mean a world of difference between selling time periods and buying time periods, especially in terms of loans or mortgages.
Be critical of each and every provision in your paperwork — the effort will most definitely be worth it.
Which Should Come First?
The better answer should be “it depends”, but a more straightforward one is that selling your home will almost always be better than the other way around.
This is because selling actually enables you to have the proper paperwork and funds in order to convince another seller to contract with you for a potential purchase.
While buying first may be possible, it will be, without a doubt, a difficult endeavor.
After all, would you sell to someone who operates on a promise that he or she will pay you once they sell their house?
It’s unlikely. Unless you can afford to take the same risk, always plan your course with selling at the forefront.
To sell your house in Dallas quickly and easily, so you can start looking to buy your new home, Call us at 214-272-2177 or fill out our quick form below to get a cash offer on your Dallas house today!