Timing Your Next Move
Whether you are thinking about moving within the next year or next 10 years, timing your move may seem like one of the biggest hurdles to getting into that next home. We understand that it may seem daunting, however, with the right help, timing your next move may be a little simpler than you think.
Every situation is different when it comes to making that next move. Luckily, there tend to be a few common trends that you can relate to or you will likely experience yourself when you are ready for that next stage.
Below, here are a few ways to prep for that next move depending on your situation:
From Renting to Purchasing
Most people in their lives rent at one point or another. If you are someone that is renting while you save up for your first or your next home, you have a couple of great advantages! One of the biggest advantages is that you will likely be able to put in a non-contingent offer on a home. This means you do not have a home you need to sell in order to purchase a new one. This helps make timing easier, and potentially your closing time frame a little more flexible.
One thing to consider with renting is that your lease likely has a definite end date. This can be a great marker to when you need to close on your new home. This can be the last day of your lease, or if you want a little extra time, you can close on your home a week or two before the end of the lease to do any little projects in your new home first, or just give you plenty of time to move in. Even if you have a lease and you want to buy sooner, you shouldn't let a far off end date necessarily deter you. In many cases, you can get out of your lease by paying a fee or finding someone to finish out your lease. If you find the perfect home, this may be the best option.
Either way, if you are renting currently and you know you want to buy within the next year or so, we would highly recommend meeting with a lender so you can start preparing for the cost. Additionally, we would love to help you get set up on a search or help you determine the best time to start looking. For example, we would generally recommend that you start diving into your search and showings about 3 to 2 months prior to your desired move in date to allow plenty of time to find that right home.
Selling and Buying at the Same Time
Many homeowners experience this transition at least once in their lifetime! Seeing as many people will start in a "starter home" and then move into a "forever home" OR go from a "forever home" to an empty nester or retirement home, this is very common. It is also a great way to help build equity in a first home and "move up" or put a larger amount down if you are downsizing.
If you are selling your home to move into a new one - there are a few ways to go about it.
Sell Your House then Purchase Another - If you find that you financially need to sell your house in order to purchase another, this is the most common way to do so. Once your home is sold, or at least Pending, you can write an offer on your next home. Keep in mind, that many times you will need to close on the same day for both homes if you need funds from your sale to close on your new home. This will also likely mean that your purchase of your new home will be contingent on the successful sale of your current home.
Purchase Your Next Home and then Sell Your Current Home - There many cases where people may feel more comfortable with purchasing their next home before putting their current home on the market. If you need to sell your home to buy your next, but want to know what your next home will be first, this may be the best option for you. It is important to keep in mind, however, that you will probably want to make sure your home is ready to sell as soon as you have an accepted offer on your next. The delay in selling your current home may void or delay the purchase of your next depending on the terms of your purchase agreement. Make sure to talk to your Real Estate agent in depth about what your options are if you are choosing to go this route.
Selling and Buying with Financial Ability to Own Both - While this isn't necessarily the most common of the three, you may be in a position where you can purchase a home without having to sell your current home immediately due to your financial abilities. This can either be because you qualify for both mortgages, or because you own your current home free and clear, and will just need to mortgage your next home. In order to do this, you will need to speak to a lender to know what your limitations may be. What's great about this option is that you can close on a new home at your leisure and sell your current home at any point that suits your needs.
In all scenarios, if you are looking to buy and sell at the same time, we highly recommend setting up a meeting with our team to discuss the steps that are right for you and how we should time it out depending on the route you take. In addition, we recommend that you to meet with a lender to understand what your financial abilities will be with the sale of your current home as you move onto your next.
From Selling to New Construction
Selling your current home to move into a home that is new construction can be similar to the step above. This biggest difference in this scenario is that if you are building and need to actually wait for the home to be completed, you will likely have a much longer period between selling your home and moving into that new home.
For this, you will most likely need a flexible buyer that can wait a longer period before occupying your new home or you may need to find temporary housing for a few months.
If you are in the temporary housing boat, you may need to find a short term rental apartment, or speak with your Realtor about any short term rentals at a home. If you do not want to do this, as occasionally it can be pricey, you may have the option of staying with a generous family member or friend for a short period.
On the other hand, if you have the financial ability to sell your home later in the process, you may just need to wait a few months after construction begins on your new home before you put your house on the market to once again align closing dates. Again, make sure you talk to your agent about options if you are going the new construction route so you have a game plan set in place depending on what you need for your next move.
No matter what your situation is when you find you are ready to make your next move, we always recommend that you reach out to us as soon as you start thinking about it so we can help you with the right timing. We are always here to help answer your questions and help make your next move as smooth as possible for you.