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Move Up Buyer: Six Insider Secrets to Avoid Trade-Up Mistakes

Posted by Pete Sabine on September 24, 2007

Making a local move usually means selling one home and buying another. The secret to making it all come together is coordination. Take a moment to review the six insider secrets to a successful move.

  1. Get all the facts early: Determine a realistic fair market value for your current home. Find out how much equity you have to add to the new loan required to buy your next home. Get pre-approved by a reputable lender and choose the best financing program to meet your needs. By doing so, you can determine an affordable price range in which to shop for your next home.
  2. Make a game plan: Make a list of repairs and cosmetic improvements for your current home that will maximize your potential sales price and eliminate delays and surprises during escrow. Complete these improvements before putting your home on the market. Meet with a Realtor to form an aggressive marketing plan to sell your home for the best possible price in a reasonable amount of time.
  3. Sell first: This is the most conventional way to make a trade up to your new home. You are not pressured to accept a below-market value offer just to meet a purchase deadline. In many cases, the Buyer will accommodate the Seller’s need for adequate time to find another home to buy with an option to rent the Seller’s current home from the Buyer past the close of escrow date.
  4. Keep a lookout: Learn the real estate market and stay on top of the inventory of available homes for sale while you are preparing your home to sell and waiting for an acceptable purchase offer. Visit open houses to discover neighborhoods and become familiar with current real estate values. Use time saving technology such as the internet (visit www.ContraCostaLiving.com) to search the Multiple Listing Service in real time. Sign up for a free automatic e-mail listing notification service to have new listings sent directly to your e-mail address that meet your search criteria.
  5. Be flexible: If you buy before you sell you may need to arrange “bridge financing” secured against the equity in your current home. Set up an equity line of credit for the down payment and closing cost on your next home. The advantages of buying first and selling second include the peace of mind knowing that you found the right home without letting go of your current home first, eliminate the anxiety of moving into temporary housing because you ran out of time to find a suitable new home plus the competitive advantage of making your purchase offer “non-contingent” on the sale of your current home.
  6. Coordinate closings: Our experience shows our clients enjoy the smoothest local moves when we work on both the sale and the purchase. There may be 15 to 30 entities involved in the transactions-appraisers, lenders, inspectors, escrow officers, etc. Direct communication is critical to synchronize your next move. The fewer people involved, the more efficient the process. 

Call Pete Sabine (925) 407-0606 for a free consultation.

RE/MAX C.C. Connection.

  

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