If you plan on selling your current house and buying a new one, there are a few things you need to take into consideration.
The first question to ask is whether you need the equity from your current property in order to purchase a new property. If the answer is yes, we suggest you list the property you’re living in first, in order to have the purchasing power necessary to buy your next home.
If you have the cash in the bank to buy your next home without having to sell, it’s a great position to be in. In that case, you can go ahead and start looking at properties before you even list. However, you should be aware of the possibility that you might have two mortgages at the same time.
Regardless of what you end up doing, it’s crucial to be aware of market conditions. **Here in Silicon Valley, it’s a very competitive market there is a lot of inventory and there are a lot of buyers. In this situation, putting an offer on a home that is contingent on you selling your current home is not going to make you look as powerful as someone else who has already sold their home and has some money in the bank. “Regardless of what you end up doing, it’s crucial to be aware of market conditions.” In this market, sellers need to be aware of something called rent-backs. Basically, a rent-back is a situation in which the seller asks the buyer to rent back the property from the new buyers. This agreement extends the closing so that sellers can remain in their house, while paying rent to the buyer, as they finalize their new living situation. Many sellers have found this to be a great way to purchase a new home without having to move more than once.
If you have questions about how you can make your move as smooth as possible, or if you have any questions about our local market, please don’t hesitate to reach out to us. We would love to give you a hand!