You have decided it’s time to sell your home and move to a new place that better fits your current lifestyle. If you’re planning to buy and sell at the same time, you’ll have the challenge of navigating real estate market in Surrey, BC as both the buyer and the seller.
Navigating this process takes extensive planning, which is why you’ll need a Surrey realtor with a lot of experience handling this tricky situation.
Here are the three options to go about doing this:
1. Sell your home first
Selling first will make it easier to get a mortgage, but it also means you could find yourself without a roof over your head when you’re in between properties.
You may want to consider renting a place for a while to give you as much time as you need to find a new home. Or you could negotiate a rent-back agreement with the buyers. That way, you will become a temporary tenant of the house you just sold. This will give you a certain amount of extra time to stay in the house after closing and give you the chance to look for a new place without having to carry two mortgages simultaneously.
Pros and cons of selling first:
|Free up cash for purchasing a new home||Costs on renting storage units|
|You’ll know exactly how much money you can spend on your new home in Surrey||The stress of moving twice within a few months or weeks after selling your old home.|
|Financial-stress free option||The stress of buying a new home|
|Prevent two mortgage payments||Home values may increase while you’re selling your old home|
|Qualifying for a new mortgage is easier||Rising interest rates before locking in a rate|
2. Buy your new home first
If you decide to buy a new home first and then sell, you could negotiate a bridge loan with the bank. These short-term loans bridge the gap between two different closing dates by allowing you to tap into the equity of your current home as a down payment for your new property while waiting for the sale of your existing home to close.
Although the ideal scenario would be to move into your new dream home and put your old house up for sale once you have dealt with the move, most people cannot afford to pay two mortgages at once.
|No temporary housing costs||The risk of having dual mortgages|
|No storage costs and paying moving expenses only once||Harder to quality for a new loan|
|You can wait for the home values to improve before selling them||Financial stress might pressure you to accept a lower offer on your home|
|You can take your time your perfect home||Finding funds for a down payment|
3. Buying and selling at the same
This third option might sound complicated, but given the right situation, buying and selling at the same time is actually a breeze.
What makes this complicated is timing your two transactions perfectly. You need the perfect timing in scheduling a same-day closing based on different schedules—yours, and the buyer’s.
Navigating the Real Estate in Surrey BC
To get top dollar prices for your Surrey homes, you’ll need to do a ton of research to get up-to-date knowledge on the current Surrey real estate market trends and values.
Selling and buying new homes for sale in Surrey, BC takes a lot of your time, so finding the realtor in Surrey with a proven track record is your only option to get advantage of the interest rates.
The Best Real Estate Agent In Surrey Saves You From Financial Harm
✔ Develops a smart pricing strategy based on comparative market analysis
Consider the market in which you are buying and selling. Is it a seller’s or a buyer’s market? Work with a local realtor who knows your neighbourhood to understand what you can realistically expect when you put your house up for sale. Your realtor will help you determine the right price for your home. This is key if you want to sell fast: an overpriced house will likely stay on the market longer.
✔ Full knowledge of Surrey real estate market
Talk to your Surrey realtor about the new property you are looking for. Is it in the same or a different neighbourhood? Which amenities do you want to have nearby? How much are you willing to pay for your new home? An experienced realtor will help you set the right expectations for your current and new home.
✔ Keeps the risks and stress to a minimum
Don’t let stress force you to make a rushed decision, whether to accept a less than desirable offer on your home or to make an offer on a place that may not be a perfect fit for you.
Don’t feel like you have to compromise on things that are important to you just because you need to find a new home quickly. Conversely, don’t accept a bid that you feel is too low just because your finances are strained by two mortgages. If you have considered in advance how you want to bridge the gap between selling your old home and buying your new house, you’re less likely to compromise.
You can reach out to our team of Realtors today to have expert guidance on the best way to navigate each option. Our team has a proven track record of giving clients confidence and peace of mind during the buying and selling process.