How to buy a house before selling your current house
Are you thinking about buying a new home but still need to sell your current one? Thats what I am going to talk about right now.
So your looking to upgrade, but need to sell your property as well. In this video I will tell you how to buy a house before selling your current one in 4 simple steps. Markets are always changing, but I would follow this approach during a buyers market. This is when there is lots of inventories and no bidding wars.
Step #1. First get approval in writing with your banker, that you would qualify for a new mortgage at the price point you are looking for. Most likely this mortgage will be approved subject to selling your current home. And if you current home has a mortgage if that can me moved to your new home, pay a penalty, or have that penalty included into your new mortgage. In Most cases if you terminate your current mortgage early it will cost your 3 months worth in interest payments.
Step #2. Find out the average days on the market and the value of your home. This way you will have a good estimate on how long it will take to sell your home and how much cash you will have to close on your new home.
Step #3 Look at new homes, and secure the property with an offer subject to sale of your current home. Also remember to negotiate for long move in dates. 2-3 months would be recommended.
Step #4 List your home, price the home at the market price, also make sure that if the buyer has a subject clause say for financing it is a few days before your subject to sale clause on the home buying side expires. This way you can ensure that your deal is firm on your home before proceeding to firm up your deal on the buying side of your new home. Also make sure that your move out dates match up with your move in dates of your new property.
There you have it, how to buy a home first before selling your current one and with zero risk of being on the hook for two homes. If you have any questions please reach out to me.
Question of the day, would you consider buying a home first or selling first? Please leave it in the comments below. I will try my best to personally answer all comments myself.
As always please like, share and subscribe and become smart savvy consumer. I make educational videos every Tuesday and videos every Friday. This is Alex from Vancouver and Thank you so much for watching this video eh?