Where Do I Begin?
Are you watching the current real estate market?
Everywhere you look there’s a bidding wart.
Homeowners are selling and walking away with tons of cash.
Maybe you’ve been lurking on the sidelines, wondering if you should sell your home too?
The question is, do you purchase another home? How do you make that work?
How do you sell your current home and buy another one simultaneously?
There are a lot of moving parts to this process and where you begin depends on a couple of factors.
Let’s dive in!
Get Dialed In
First things first…
You need to look at what’s going on in your subdivision - what are homes in your neighborhood going for?
Is the home updated?
Is it being sold as-is?
How many bedrooms?
How many bathrooms?
You only want to look at homes that are similar to yours. This will give you the best idea of the range that you would expect to get from your home.
You don’t need to nail down an exact number that you would want to get for your home, but you do want to get a ballpark idea of what you can expect.
Once you have an idea of what comparable homes in your neighborhood are selling for you need to take a look at how much you owe on the place.
How much of your mortgage have you paid down?
This is a huge component because we need to make sure that the numbers make sense.
Now, an important thing to remember is that there are other costs associated with selling a home.
So let’s say you think you can sell your home for $500K and you owe $315K on the mortgage…
$500K - $315K = $185K
$185K is a pretty healthy margin.
But you have to remember that you won’t see all of that money. You have accounted for all of the other costs, such as:
Paying the real estate agent,
Even with having to account for those additional costs $185K seems like a good number with enough margin for you to walk away with a good amount of money.
Basically, you need to know if selling your homes makes sense. And the only way you’ll know if it makes sense is if you get dialed in.
If the numbers seem to work, you move on to step two.
Connect With a Great Agent
You might be thinking, “Why should I connect with an agent? I can keep more money if I do this myself…”
As tempting as that idea feels, I want you to remember that a great agent is going to be able to help you get the most bang for your buck.
A great agent can help you get further dialed by:
Guiding you on pricing and position strategy.
Understand what kind of timeline you are looking at?
Identify how much home prep should you do if any?
Market your property?
A great agent will really help you dial in on your strategy so that you walk away with the best possible outcome.
You know, a great agent's going to step you through all those different things. And it's going to be a team approach to see what makes the most sense for you.
But, before you sign on the dotted line with a great agent you need to...
Connect With A Great Lender
If you're buying locally, the agent that you're working with (you're probably going to work with them on the buy-side too, or at least their team) can give you a recommendation for a local lender.
I do highly recommend that the lender is a) local. and b) you want to work with their lender because they're going to know the local trends.
It's just gonna make your life easier.
You need to connect with a lender because you need to make sure that what you want to buy makes sense too, right?
Like, does your budget allow you to get what you have in your head?
If so, selling still makes good sense.
If it doesn't, then we may need to put the brakes on and reevaluate. It doesn't make sense to sell it if you can’t get the house that you’re envisioning in your head.
I once had a couple reach out to me about selling their home and purchasing a new home. The couple made great money. They had a ton of equity in their home. Selling seemed like a no-brainer.
And this is a big one.
When we connected them with a lender we found out that their credit score was in the tank.
Their credit had been ruined because they were late on payments multiple times on multiple accounts...
It was going to take a minimum of 2 years for them to repair their credit to even qualify for a loan.
So at that point, even though the market was hot, they had the equity in their home, and they made great money there was no way to make a deal work because they could not qualify for a loan.
Here they were thinking they were a shoo-in for financing and it turns out they weren’t.
The point is, I want to make sure that the end results make good sense for you.
The Bottom Line
If the deal makes sense, cool, do it.
Lock it in, sign up with that realtor and get your home sale journey going.
The final piece of advice I have for you is this…
Have fun with it.
This is a big deal.
You’re looking to sell your current home and go on to the next. Whether it’s upgrading to something bigger, better, and updated or downsizing to something smaller, the point is that this is a big moment in your life.
Getting dialed in and having great people on your team will only make this process more enjoyable.
Are you considering selling your home? Download my free Home Seller Checklist to get you started on your home selling journey.