How to Buy and Sell at the Same Time

Most sellers also are planning on moving on to a new home. That’s why this bonus article is a must-read in my series, Love Selling Your Home: Minimize Your Stress, Maximize Your Profit.  It’s taken you step-by-step through the entire home-selling process, and here’s how you can love selling and buying at the same time! You’re ready to trade up to a new home, and that means you’re about to face the homeowner’s dilemma of what to do first: SELL your current home first and use the proceeds to buy a new home. or BUY your new home first and hope your current home sells in a timely manner. It’s a tricky dilemma since you don’t want to end up with two mortgages at once or having no place to live at all!  Here’s how to avoid that Catch-22: Get Ready and Plan Ahead Timing is everything. You want to make sure you’re in the best possible position no matter what, so start with some major pre-planning no matter what option you choose. • Get your home ready to sell.  Tackle some home improvement projects so your home looks welcoming to prospective buyers. Get this done beforehand even if you plan to buy first so you can move quickly to list your current home on the market. • Scope out your current home’s competition. Take a look at homes you’ll be competing with to determine market conditions in order to set a competitive price. You may decide to wait a bit if the market is slow or maybe your home can be priced more aggressively. • Get pre-approved for a mortgage. You MUST do this first no matter what. You’ll know how much you can afford and will be able to move forward on buying a new home if your current one sells quickly. And, sellers will view you more favorably and may take a lower offer than another that’s contingent on financing. • Examine financing options. Consider a bridge loan, a short-term loan that “bridges” the gap between buying your new home and selling your current one. Especially in a competitive market, this is a great way to look strong in your offer for your new home. • Be an efficient and smart “shopper.” Don’t waste time looking at homes you can’t afford or don’t meet your requirements. Narrow down your search to those that you would seriously consider buying. Unless you plan to be in the “thinking” about moving stage and just want to see your options, then go ahead take your time. However, if you’re serious about moving on, then you need to be strategic and be well prepared as both a seller and buyer. • Add contingency clauses. Review the pros and cons of contingency clauses and how they fly in the current market. You can agree to sell your current home contingent on purchasing your new one and/or agree to buy your new home contingent on selling your current home. Be aware though, most sellers and buyers like contingent-free offers! Sell Before You Buy Most agents suggest selling your old home first as the best strategy for several reasons. Pros: • You won’t be at a disadvantage at the negotiating table, feeling pressured to accept an offer that is below-market value because you have to meet a purchase deadline. • Once your home is sold, you can buy your next one with no strings attached, basically no contingencies. • You will have equity immediately available to use for the purchase of a new home. Cons: • You may need to find interim housing – either renting back your old home or finding a place to stay between homes. • You have more pressure to buy and it might lead to rash decisions when looking for a new home. Buy Before You Sell Pros: • You can search for a new home without any pressure. • No need to find interim housing. Cons: • You run the risk of having double mortgage payments. Plus, not every buyer will get approved for another mortgage while still owning a home. • You don’t know the equity you will get from your current home. Communicate and Coordinate Whatever option you do first, you still need to coordinate two major transactions in a short period of time. You’ve got many people – lenders, appraisers, lawyers, and home inspectors – that you will be dealing with for BOTH homes. It can be a logistical nightmare so work closely with your agent to avoid mix-ups. Buying and selling at the same time can feel overwhelming—how can you time it all so you don’t end up with two homes or no homes.  I have a very unique strategy to help you through this time to ensure that you end up with the best next home for you, at the right time and sell your current home for the most money possible.  I’d love to show you how I do this and help you through what can be one of the most stressful times of life.  I’ll show you how you can do both with more ease and end up with your dream home, all at the same time. Email me whenever you are ready to talk, months before you are ready to move, so we can plan everything out together and make this happen for you!  I look forward to hearing from you!

How to Make Settlement Day a Success

This series, Love Selling Your Home: Minimize Your Stress, Maximize Your Profit, is a step-by-step guide that covers everything you need to know to sell your home in today’s market, from finding a real estate agent to all the way to settlement day. The big day is finally here! You are going to officially sell your home and hand over the keys to the new owners. It’s not unusual to experience a wave of anticipation and excitement leading up to this day. But no one wants the transaction to be sidetracked by any surprises. Unfortunately, that can happen. Do your homework now and you’ll have a successful settlement. Here’s what you need to do prior to this day, and also what to expect at your closing and what to bring with you. Pre-Closing Tasks to Complete Any agreed upon repair work to the property or home should be completed by this date unless the buyer has agreed to work with their own contractor at a later day. The buyers will have their walk-through inspection just prior to the closing that day. Prepare to vacate your home on the agreed upon time with the buyer. If you and the buyers have agreed the moving will not take place on or before closing, you should negotiate a “rent-back” agreement. Cancel or transfer your utilities, effective that date. Cancel your homeowners insurance, effective that date. Cancel any monthly fees such as trash service, service for any alarm systems, condo fees, etc. Cancel any automatic payments that have to do with your home so you aren’t paying for it after you sold it! Contact your lender to make sure they have a forwarding address so they can forward any money left over in your tax and insurance escrow account. What to Bring to Closing Bring your driver’s license or some form of ID. Gather all keys (door, mailbox, gate, garage remotes, etc) and any other items that the buyer will need to access your home. These can no longer be in your possession. You can either leave them in your home but at least bring a key for them to access your home after closing. Bring your checkbook.  The title company can take a voided check to directly wire you the funds/proceeds from your home sale. What to Expect at the Closing You and your agent should plan to attend the closing at the specified time at the settlement company’s offices. The buyers also will be there with their agent. This is the day you will legally transfer the property to the buyer, pay off any mortgages, and receive any proceeds from the sale. You also will need to pay any parties you have been working with on the sale and closing of your home. Make sure you have your checkbook and are aware of any payment amounts in advance if possible. If you plan to use some of the proceeds of this sale to purchase a new home, then you definitely want the closing of your current home to go smoothly with no delays or issues. Keep in mind that the settlement company acts as a third party overseeing the terms in the contract to ensure they are being carried out and the transfer of ownership occurs.  They don’t represent you or the buyer, but the terms of the contract.  They also handle the closing process for that day and you will all meet in his/her office. This is to ensure that all parties involved (you, the buyer, your agent, their agent) can properly oversee the transaction.   The settlement company will handle the documents, money, and any other items from all parties and make sure that everybody gets paid (including any previous lenders) where necessary.  You will be signing a lot of documents that day so make sure you understand and know what you are signing. Ask questions and confirm amounts if necessary! Congratulations … You sold your home! Now that you have closed, it’s time to move on to your new home and make some new memories. This was the last article in my Love Selling Your Home series. It’s taken you step-by-step throughout the entire process. You now know that selling your home doesn’t have to be stressful or chaotic.  I hope you’ve learned a lot from this series and more than anything, I hope you feel confident that you can make this happen and I’d love to help you do it.  When you are ready to start talking to agents, I would be honored to be one of the agents you interview.  Let me show you how my unique approach to selling your home works so well to ensure you get the biggest profit possible, with the least amount of hassle for you, all at the same time.  Email me and I’d be happy to meet with you and help you figure out what you need to do to get your home ready (and what you don’t), talk pricing, talk marketing and timing too!  I think you’ll feel even more excited about selling your home and how great of a process it can be after we meet. Next week, I have a bonus article for you, How to Buy and Sell at the Same Time. So many sellers are also buying a new home. You’ll learn how to do it successfully.    

Get Organized for the Big Move

Love Selling Your Home Series This series, Love Selling Your Home: Minimize Your Stress, Maximize Your Profit, is a step-by-step guide that covers everything you need to know to sell your home in today’s market, from finding a real estate agent to all the way to settlement day. You’ve got mixed feelings about moving right now — excited to make new memories in a new home but somewhat sad to be leaving your old home. No matter what, you’ve got to get organized and focused for your big move and all the details it entails. Here are some ways to help you NOT feel overwhelmed leading up to your move (and your settlement day). Doing some preparation months or weeks ahead can make a huge difference in the final days, so keep that in mind when you first list your home. Find an organization system that works for you.  Whether you create an “old-school” binder or find an online app that can keep you on track, take the time to stick to a system and use it. It can be a great way to stay organized and have all your information in one spot.  Keep your estimates, receipts, check lists, phone numbers, and even an inventory of items being moved. This can relieve a lot of stress during the entire process. Go through ever room to sort and purge.  Basically, don’t move things that you don’t use or want anymore! Moving should force you to throw things out or donate or recycle. However, you really should make some headway on this BEFORE you put your home on the market.  A clutter-free home has more appeal to buyers. Don’t forget to dispose of any toxic or hazardous materials you may have lurking in your garage or basement. Check with your community to see where these can be disposed. For those items you will keep, make a list of what needs special packaging or extra insurance coverage for the move.  What about any large paintings or fragile pottery? Research movers and get written estimates to compare costs. Ask friends and family first about reliable movers they have used recently. Do not rely on a quote over the phone since you should request an on-site estimate. You’ll also get an idea of how long it will take to pack up your home and move it to the truck. Are you in a condo building and have to use the service elevator or in a townhome with no parking close to your home?  About a month or two before the move, select a company, confirm the date and arrival time, all costs, both addresses, and any details so you avoid any confusion during the actual move. Get supplies for the move. If you aren’t receiving boxes from a moving company, ask around for some to reuse or order new ones. Also make sure you have a stocked supply of tape, bubble wrap, and permanent pens if you plan to pack yourself.  Don’t forget you can even go green by using towels, sheets, and blankets to protect items. Your mover may be able to supply wardrobe boxes and dish barrels but double check. Let others know you are moving and provide new address or cancel services. Contact the post office with your new change of address.  Also directly contact others to cancel their services or to let them know your new address if you’re continuing their services. This can include vendors for your lawn care, pest control, pet walker, newspaper delivery, house cleaners, gym, swimming pool club, etc. Notify any health professionals about your move and new address.  Depending on how far you move and if you will continue to be a patient, you may need to have any medical records transferred or forwarded to a new health care provider. Also contact your pharmacy with your new address, and refill any prescriptions as necessary so you don’t run short the days around the move. Don’t forget about notifying your banks and other financial institutions, your credit card and insurance companies, broker, employers, etc.  If you have a bank deposit box, remember to schedule a time to clean it out if necessary. If you have children, make sure their school records are sent to the new school district. Have a plan when packing your items. First, pack things that you don’t use as frequently and go from there as you get closer to the moving day. For example, are there certain toys your kids don’t use all the time? Are there items already stowed away such as crystal glasses and china that you don’t plan to take out anytime soon? Get them in boxes now! Also make sure you pack one or two boxes with essentials that you will need right away when you move into your new home.  Keep track of these boxes! Items such as expensive jewelry or important files should be moved to a secure box that you can move personally, if possible. A few days before the move, pack some suit cases with clothes, shoes, and personal items you will use during the first few days in your new home. Don’t forget shampoo, your tooth brush, any prescription or over-the-counter drugs.  Even if you’re not going cross-county and just heading down the road, plan like you’re going on a trip. Plus, why not use those suit cases, since you need to move them anyway! Label your boxes. Yep, it’s that simple but very important. Label what is in the box, what room it is going into, and even give it a number. This can help you keep an inventory of your belongings and let you know if you’re missing a box or not.  Some people take pictures of items in boxes and store for reference later on. You also can use color coded labels if you want to be even more organized. Maybe red labels could mean there are items you need soon after you move in rather than a box that can be unpacked much later. Plan to have someone in your family onsite supervising the move.  Always verify that it’s the correct truck and company. Meet with the supervisor to go over the details of the contract, which should have an inventory list. Keep a copy of any signed documents and don’t forget to exchange cell numbers! Also, it’s nice to tip and provide refreshments to the movers who will be working hard all day for you. Scope out your new home. If your new home will be vacant before you move, you can spend time measuring the room sizes to see how furniture will fit or not. You can also spend time picturing how you want to set up the rooms so you know where to tell the movers to move certain pieces of large furniture or artwork.  If there’s even more time between moves, an empty house is easier to paint or refinish floors if that’s the plan. Leave your home “broom swept” clean and tidy. Don’t leave a mess for the new homeowners or any garbage. You don’t legally have to hire a cleaning service to make it spotless. It’s not a beach rental! However, you have loved this home so make them feel welcome and relieved when they arrive.  Leave your old home the same way you would want to find your new home that day.  The new owners may get some mail of yours or packages, so keep it friendly and cordial. Don’t worry, as your agent, I’ll help you make sure you have everything you need when it comes to this stage of the process.  Stayed tuned for next week’s last article! How to Make Settlement Day a Success will help you plan for a glitch-free day and give you a rundown of what to bring and what to expect for the meeting.

Pre-Closing Tasks When Selling Your Home

This series, Love Selling Your Home: Minimize Your Stress, Maximize Your Profit, is a step-by-step guide that covers everything you need to know to sell your home in today’s market, from finding a real estate agent to all the way to settlement day. You’re now one step closer to officially selling your home. Even though you have a contract with buyers, you’re not done yet. There’s a lot to get completed before closing day, and you might feel like your “to-do” list keeps growing and growing. And, you’re right! Keep in mind that no one wants the transaction to fall through or be delayed at this stage because of a mishap. Here’s what you need to focus on: What to Expect Try not to be too distracted by moving logistics or good-bye parties. It’s important to be very organized in the days leading up to your closing.  Make sure you focus on the things you need to get done in your home and also the items that need to be prepared for the actual settlement.  Most importantly, you don’t want anything missing or forgotten, especially any important paperwork when you meet with the buyers to transfer your home to them. Depending on your contract, you may or may not need to be out of your home by the agreed upon settlement date. For example, some sellers may rent back from the buyers for a short period before they move.  You’ll face three different steps in these pre-closing days – a home inspection by buyers, any home preparation or repairs completed by you, and the gathering of any documents for the actual closing day. Home Inspection by Buyers Your contract may include a contingency that gives the buyers a certain number of days to complete an inspection by a professional.  On the day of the inspection, you should not be at the home but your agent can be present as your representative. You can be available via phone to answer any questions though. Make sure all of the utilities are on even if you have moved out at this point. Depending on the inspector’s report, the buyers may ask for repairs, try to renegotiate the price to compensate for handling the repairs themselves, or even cancel the contract if they wish.  Preparing Your Home It can be a whirlwind of activity in the final days of living in your home.  However, you do want it ready for the new homeowners and not have any loose ends. You may be moving out … but they are moving in! Make any necessary repairs after the home inspection if agreed upon. Collect any receipts and information on this work to prove you have satisfied any inspection amendments. Disconnect the utilities on settlement date. You should schedule a final reading too. Contact your insurance company to forward your mail with the post office. Notify others of your change of address. Organize any information to pass on to the new owners about the home, such as appliance information (receipts and manuals); warranties; repair records for appliances, water heater, furnace, etc.; and any contractor dates of service. This is when your home maintenance manual comes in handy! Collect and label all keys to every door, any mailboxes, garages, outdoor shed, etc. Plan to bring them to settlement to hand over to the buyers.  Make sure the house is in “broom swept” condition after you move out.  Usually the buyers will complete a walk-thru before heading over to where you’ll meet to close on the home. Preparing for Settlement Your agent will go over everything you need to have done and to bring on settlement day.  Call your bank and make sure they have your new mailing address.  They will need to send you loan information and the balance in your escrow account.  Bring information about where you’d like your proceeds from the sale to be sent to by the Title Company, etc.  Double check that the entity who is handling the closing has all the necessary documents and they will be ready to be signed by the settlement date. Place a call to confirm they have received all necessary documents so there are no surprises on that day. Now is the time to discuss any concerns with your agent if you anticipate any disputes. Don’t wait for the actual day, but rather anticipate during these pre-closing days to settle any concerns. As your agent, my job is to keep you on track and make sure you know what to do when, so nothing falls through the cracks.  That’s my responsibility as your agent, not yours!  Just know if we work together to sell your home, I have a system that ensures you know what you need to do when and even how to do it.  I leave nothing to chance and do as much as I can to make sure this part of the under contract phase goes as smoothly as possible for you. You just learned that you’ll be busy with many pre-closing details, which includes moving too. That’s why the next article is perfect — Get Organized for the Big Move & Beyond. Here’s the help you need in order to say “good-bye” to your old home and say ”hello” to your new one!