Are you thinking of selling your home and buying a new one? As a homeowner, you play a vital role in both of these processes.
Although this is a very exciting time, you have a lot of work ahead of you. Preparing a house for sale while looking into buying a new one creates a lot of pressure and stress. Whether it’s been some time since you first bought your house or you’re looking for ways to make both processes easier, we have some tips that will help you along.
Below are the six ways on how to sell a house and buy a new one:
1. Hire a Real Estate Agent
Real estate agents have both the knowledge and skills that will help you sell a house and buy a new one. From performing an analysis of the local real estate market to determine the value of your home to negotiating offers to get you the best price, real estate agents perform a variety of tasks. This not only means less stress for you, but it ensures that you are selling your house as fast as possible for as much money as possible.
When looking to hire a real estate agent, it’s so important to do your research. You want to ensure that you’re hiring someone with a proven track record of success selling properties similar to yours. Read client testimonials, check out social media, and ask for referrals. If you know someone who just sold their house, chances are they can recommend a real estate agent to you.
Once you’ve found a potential real estate agent, set up interviews with each one to find a professional that not only has the skills but also jives well with your personality. Be sure to ask them lots of questions to be sure they have the know-how that you’re looking for.
2. Prepare Your House for Sale
Now that you have a real estate agent lined up, it’s time to prepare your house for sale. To make this process easier, start by making a list of everything that needs to be repaired or replaced. This includes appliances, power washing the exterior of your home, repainting, and replacing countertops.
Although some repairs are necessary, not all of them will add value to your home. Once you have put a list together, go over it with your real estate agent to see which ones are absolutely necessary.
If you decide you would like to stage your home, speak with your real estate agent first. They most likely have professionals that they work with and can help set it up for you. As this can be quite costly, make sure to weigh the pros and cons first.
3. Evaluate Real Estate Offers
Once you have offers coming in, you have three options: accept the offer as-is, decline the offer, or make a counteroffer. This is a tricky process so listen to your real estate agent’s advice and make sure that if you are accepting an offer, that you’re happy with it. Your real estate agent is a professional negotiator so use their skills to your advantage.
4. Set a Real Estate Budget
You must set a budget when buying a new house so you don’t bite off more than you can chew. When looking for a new house and setting a budget, it’s a good rule of thumb to look for houses that cost no more than three to five times your annual household income. This is a good rule if you plan to make a 20% down payment on your new house and have a moderate amount of debt.
Once you know how much you can spend on your home and how much you need for your down payment, make sure that you’re also budgeting for your monthly mortgage payments.
5. Start Looking for Your New House
With the help of your real estate agent, start shopping for your new house. We always recommend taking notes, pictures, and even videos of all the homes you visit since it’s likely you won’t be able to remember everything.
Feel free to test things out when you’re looking at potential homes. This includes checking out the electrical system by turning lights on and off and opening and closing windows and doors to make sure they’re in proper working order.
6. Get a Home Inspection
Once you have made an offer on a potential new home, your real estate agent will help you organize a home inspection of the property. Offers are usually contingent on a home passing its inspection. This ensures that you can renegotiate or even withdraw your offer depending on the results.
Remember that you can request the seller fix anything that needs to be repaired or replaced before you close the sale. Your real estate agent can give you feedback and pointers here, so you know what’s important and what isn’t.
At the end of the day, do what feels right for you. You will be the one living in your new house so make sure that you find one that you really love.