Many people can successfully buy and sell Napa luxury homes at the same time. That doesn’t mean the process is easy or simple, but with the right approach, it’s possible to handle multiple transactions at once. If you’re thinking about buying and selling Yountville real estate simultaneously, you’ll find some tips below that will help you better envision the process and determine what success looks like for you.
Understand the current state of the market
Having a better awareness of how things currently stand in the local market will inform the decisions you make as a part of both transactions. It may also help you decide whether it’s best to buy first or sell first. Right now, the market for Napa luxury homes is somewhat competitive. Homes usually spend four to six weeks on the market and sell for a price slightly below the listing price. Occasionally homes will receive multiple offers and go for an amount higher than the original asking price. It’s also important to remember that the market is usually more favorable for sellers during the late spring and early summer, while buyers often have more negotiating power during the fall and winter.
Decide whether you’ll buy or sell first
Even though you plan to complete both transactions at the same time, you’ll probably prioritize one deal over the other when you start working. Both options have benefits, and the best possible approach will vary from person to person. If you decide to sell first, you won’t have to worry about carrying two mortgage payments at one time or securing outside funding for your home purchase. The downside to selling first is that you may experience a gap in your living situation that requires you to make alternate plans for where you’ll stay as you shop for a home. This won’t be a concern if you buy a new home before you sell your current home, but you’ll have to ensure you have sufficient funding to purchase your new home before closing on your existing home.
Take care of funding
Unless you plan to purchase your new home with cash, you’ll work with a lender who can supply the funds for your purchase. If you’re going to buy first, your lender will want to determine how long you could carry both mortgages before it becomes a financial burden for you. Although the goal is to sell your current home quickly, you don’t have complete control over how long this process will take. Once they review your financial standing, they will give you a pre-approval letter explaining the type and amount of loan you can qualify for. Don’t forget that different lenders can offer different interest rates, and you could save money in the long run by shopping around from multiple providers to see who can offer you the best deal.
You’ll also need to have enough cash on hand to cover your down payment and closing costs. If you sell your current home first, you can use the proceeds to fund these expenses. If you decide to buy first, you may consider options for funding. Bridge loans are a popular tool for people who are buying before they sell. These short-term loans provide funding that you can use to cover your down payment and closing costs while you wait for your current home to sell. The downside to bridge loans is that they sometimes have higher interest rates and often require collateral. Another option is to make an offer on a home that includes a request for the seller to pay your closing costs. You’ll probably have to pay a higher price to purchase the home, but you can close on the home without needing to bring as much cash to the table.
Prepare your current home to sell
You’ll have several tasks to complete before you sell your home, and starting early will save you stress later on. In addition to thinking about where you’ll price your home, you’ll want to perform any outstanding repairs that could make it more difficult to sell your home. Some homeowners will also implement small upgrades or renovations to help their homes stand out on the market. You’ll also need to consider how you will advertise your home once it goes on the market. Your realtor can help you develop a strong marketing plan that includes a variety of digital marketing efforts in addition to more traditional elements, such as putting up a “For Sale” sign in your front yard. Some homeowners will also hire a professional stager to help them prepare their home for pictures and showings, while others will look for DIY home staging tips they can implement independently.
Work with the same realtor on both transactions
You’ll probably have an easier time buying and selling a home at the same time if you entrust both deals to the same realtor. Because they understand the unique situation that you’re in, they will be able to act in your best interest throughout the entire transaction. They can advise you on what specific decisions to make inside both transactions in light of your overall position. Most realtors are used to handling multiple transactions simultaneously, so it shouldn’t be a major issue for them.