There are pro’s and con’s of buying a home before selling your current home and the same can be said about selling your current home before buying another.
BOULDER, Colo. (PRWEB) May 15, 2018
Buying a house is one of the biggest decisions a person can make. “Furthermore, it can leave one with a lot of questions,” said Colorado Landmark Realtors’ David W. Scott, who was recently named the 2017 Realtor® of the Year by the Boulder Area Realtor® Association(BARA).
To educate buyers on the process, Scott answers the following two imperative questions:
Question No. 1: Can I buy a home and sell my current one at the same time?
Answer: “There is truly no concrete ‘correct’ answer to this question,” noted Scott. “There are pros and cons of buying a home before selling your current home and the same can be said about selling your current home before buying another.”
Buying a home before selling the current home: The biggest benefit to buying a home before selling the current home is the fact that one has a suitable property lined up. “This can reduce the stress and pressure of having to find a home once your current home is sold, but can also create disappointment and heartbreak,” added Scott. “If you are unable to purchase a new home without having to sell your current home, your purchase offer is going to be contingent upon sale and transfer of title of your current home. If your current home does not sell in a timely manner, this can lead to you getting ‘bumped’ by a non-contingent buyer and you losing out on the home you’re looking to purchase. In today’s hot market, most sellers are not willing to accept a contingency offer based on the sale of your home. While they may like your offer, they are concerned about losing a potential buyer while they wait for the sale of your home. If you have sufficient cash for the purchase of your new home, then you can structure a great offer and take time to sell your home.”
Selling the current home before buying a new home: The time it takes to sell the current home is unpredictable. “There is no crystal ball that exists that can tell you exactly how many days it will take,” stressed Scott. “Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you’re purchasing due to the fact you are purchasing without the sale contingency of your current home. In the Boulder-area market, most homes are selling quickly and often above the asking price with multiple offers. This creates a situation where sellers are apprehensive about selling their home without being sure that they can find a new home it this highly competitive market.”
Question No 2: Should I talk with a lender before looking at homes?
Answer: The answer to the question is yes. “There are tons of reasons why you should speak with a lender and get pre-approved before looking at homes,” claimed Scott. “Having your financing arranged in advance helps you understand what you can afford and it puts you in a better position to make a stronger offer.”
There are a variety of financing options for all buyers. There are many first-time home-buyer programs, as well as ways for buyers with strong credit to enhance their offers. In competitive markets, being more creative with your lender can often be the difference in a very competitive market. These programs can vary from state to state and county to county, so knowing exactly what’s available is critical.
“Another important reason to talk with a lender before looking at homes is so you understand exactly what costs are associated with buying a home. There are many home buyers who don’t understand the difference between a down payment, prepaid items and escrows, which can be thoroughly explained by a mortgage professional,” concluded Scott. “A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller’s concession.”
About David W. Scott, Colorado Landmark, Realtors
David W. Scott specializes in luxury homes, first-time buyers, residential and resort property for Colorado and international markets. He is a member of the Colorado Association of REALTORS®, Boulder Area REALTOR® Association, National Association of REALTORS®, International Real Estate Federation (FIABCI) and Accredited Buyer’s Representative (ABR®). For more information, please call (303) 588-8358, or visit http://www.boulderrealestateinfo.com. Colorado Landmark, Realtors is located at 2350 Broadway, Boulder, CO 80301.
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