Selling and buying - where to start?

After living in our house for 10 years we are thinking about moving. We should be able to come up with the downpayment for the new house, but our current home is our largest asset which we will have to sell to pay for the new home. Where do we start? Do we list our current house first? Do we find the new house and then put the current one on the market? We have kids in elementary school and no family on LI we could stay with between the houses.

Re: Selling and buying - where to start?

We’re in the middle of this process now. This is what we did:

We knew we'd be saving for a downpayment independent of the sale of the house, but also knew we couldn't carry two houses. So...

First, we tracked what similar houses in our area sold for. We took a look at our budget and figured out how much we were able to spend per month on a mortgage. (A lot of people will say that your pre-approval will tell you how much house you can afford. I totally disagree – do your own math).

We also started to scout out a search area and at the kinds of houses that would be available in the price range we wanted to work with. We went to Open Houses to check out layouts, neighborhoods, potentially figure out a commute to work, etc.

And then we started to interview realtors. I had some specific criteria for who I wanted – and I made sure to ask how they would help me time a sale and purchase simultaneously. Some were more comfortable navigating a buy/sell on a timeline than others. (FWIW, I am thrilled with the realtors we hired. PM for names!)

We prepped the house for listing. My realtors had some suggestions and I had a few things I wanted to do. They scoped out our competition and figured out a listing price. And then we put it up on the market. The house generated a lot of interest very quickly because IMO the pricing was spot-on. We went to get pre-approved.

Our realtors took us around to different houses. They helped us negotiate the bidding process, and when one house’s inspection report came back with a bunch of red flags, helped us steer us into a better house. Our inspection is Tuesday, but we all expect it to go well. Assuming it does, we should be moved in by Memorial Day weekend.

It’s a slightly crazy process, but a lot of it is being realistic, organized, and hiring good people. Good luck!

Message edited 2/8/2015 7:34:38 AM.

Re: Selling and buying - where to start?

I'd be happy to talk with you about the process. I have helped people sell and buy at the same time, but there are some challenges involved in going that route that I do like to lay out and discuss at the outset. Can it be done? Yes. But there are some potential obstacles that you may face.

You have to put your house in the market first, and find a buyer. If you are not in contract in your current home, there's no point in even making an offer on another home. So you will have to be prepared to find a new home quickly, so it helps if you know the area you are targeting and can be sure you will find something you like. It helps if the buyer for your current home can be a bit flexible and give you more time to close on your sale (but some buyers want or need to close ASAP, and there's always concern about mortgage rates rising).

Also, right now, many areas of LI are competitive for buyers because there's a lot of demand and inventory is down. Having your offer be contingent on the sale of your current home will make your offer compare less favorably to those who don't have a contingency and can be concerning to sellers. It is less of an issue and more common in areas where "trading up" is common (e.g. Dix Hills) than in areas where you are competing with a lot if first time buyers who rent or live at home.

Again, all of this can be overcome if the right circumstances align, but it's just helpful to know what may crop up at the outset and try to prepare and make the choice that's best for you and your situation, your tolerance for different scenarios, etc.

Last year, I helped a poster on this board (Serendipity) list and sell her current home and buy a new one in a different area of LI at the same time. You can search this board for her review of my services. It all worked out for them, but not without some glitches and issues and stress.

Last year, I also worked with another poster from here who had sold her Queebs coop through me, and didn't have family to stay with, but opted to take a short term rental for 6 months in the area where she was looking fir a house rather than rush the process and wind up settling for a less than ideal home, which was going to be a long-term home. Sure, it was inconvenient to do this and cost them a bit more in rental fees, moving and stoage fees, but this is what they decided was right for them.

Let me know if I can help! I'd be happy to consult with you or answer any other questions.