Buying and Selling A House At The Same Time. Tips You Need To Know
Video Highlights:
a) Consult with a mortgage professional of your choice.
b) Make a game plan
1) Keep both houses rent one* (investment properties usually have higher mortgage rates)
2) Buy and sell at the same time if your finances allow.
3) Use a **Bridge Loan.
Watch to the end of this video to take advantage of my free sellers guide offer
**A bridge loan is a short-term loan secured by the equity in your current property to help you purchase your new property thus allowing you extra time to sell your current house after closing on your new property. These loans usually have high interest rates and fees attached to them.
4) Buy with a seller’s contingency try to schedule closing the same day with the same mortgage, title company and attorney if possible (not the strongest offer)
5) Sell first, find a temporary place to live. (stronger offer than a contingent one) all other factors being equal.
Transcript Of Video
Mark Schreier: Hello everybody. Are you looking to buy and sell a house at the same time? Well that's the topic of today's video,
Mark Schreier: Buying and selling house at the same time. That is the topic of today's video. Hello everybody. My name is Mark Schreier and I'm a Licensed Sales Associate with Century 21 American Homes Real Estate right here in Syosset long Island. Today I'm going to give you four tips to help you move forward with that double transaction. Let's get into tip number one. Actually there'll be five because tip number one is sit down with a mortgage professional and discuss all your finance options. Everybody's situation is unique to themselves. Find out what they are, find out how much you can afford moving forward if you have more, if you're using a mortgage and find out how much naturally is left on your current mortgage and what your options are financially. So I'm going to give you four things you can do to help you move forward with that game plan.
Mark Schreier: Once you know your financial options, you can "A" keep both houses or one keep, both houses you choose. Use one as an investment property and you know, for rental rented out. And the other one is your primary residence. Understand if you're going to utilize a mortgage and it's with a mortgage professional would come in. Usually a second property is considered an investment property and it comes with a higher a finance rate than a traditional first property. So make sure you discuss that with that. with them. Number two, buy and sell the house at the same time. For some of us that's an easy thing to do financially. If you have the money you can buy one and sell one. You don't have to worry about the timing or anything else. But for most people it is a financial problem and also a timing problem. The way you can, um, eliminate some of those issues is one, you can use a bridge loan and a bridge loan is basically exactly what it sounds like.
Mark Schreier: It is a short term loan that will fill the gap or the void and the finances that you have. So you currently own your house a that you're living in. You want to buy home B, you can use the bridge loan for a down payment and also to satisfy the closing costs. And then once you sell home A, you pay off the bridge loan understanding higher percentage rate, uh, on those bridge loans and also some pricey closing costs. Discuss that with your mortgage professional or your local bank to find out what exactly that entails to see if that's a viable option for you. Also, if you're going to buy and sell at the same time, a tip is to try to use the same title company to do with a title search because everything is in house. They know they're selling this one, they're buying that one.
Mark Schreier: Use the same mortgage company. If you're using a mortgage, all the funds are staying in house and if possible, if you're staying local, use the same attorney so it'd be very easy and try to time everything on the same date you do the closing on house in the morning, closed it on the other house in the afternoon and everything can run smoothly. In a perfect world. Again, in a perfect world, but that doesn't always happen. So that would be a very good scenario if it was able to go. Uh, one thing I want to mention is stay tuned to the very end of this video. I'm going to be giving away a free sellers guys, or if you're looking to sell your house, this is a free guide to help you save some money. Some do it yourself, things that you can do to improve the property value of your house.
Mark Schreier: Look for that at the latter part of this video. Back to number four, sell as contingency on a seller's contingency. You're going looking at houses and your making offers contingent upon the sale of your house. Understand that if it is a sellers market is sellers contingency offer is not a good way to go because if somebody is getting multiple offers on their property, a property with a seller's contingency is not considered as strong as somebody making an offer with the same credit rating, the same, uh, dollar amount one with the seller's contingency is not as good as an offer, as the same offer without that contingency all else or all of the things being equal. Okay? And number five, sell your house first. Get a temporary place to live. And then once you sold your house, whether you're living in a hotel or a family or a friend's house, once you sold the house, then you can go out looking for the new place for you to live.
Mark Schreier: And now you're selling what we call your, you're an unattached buyer, which you have much better terms than somebody who is attached to a property. Like I mentioned a moment ago, I hope this wasn't too confusing for you. Again, remember to give me a thumbs up and subscribe if you enjoyed the video, leave some comments below. This is Mark Schreier from century 21 American Homes. And thanks again for watching. Hello? Yes, I'm talking to you, the person that watched my video to the very end. Thanks a lot for watching. If you enjoyed it, please give me a big thumbs up. Subscribe to my YouTube channel like me on Facebook. I am a licensed real estate agent in New York state, but I also have a referral service that deals nationwide. So if you're looking for to buy or sell a house anywhere in the United States, please send me a text, contact me via phone, and I'll set you up with a local professional in your area. If you're in my vicinity, I'd be more than happy to help you out in any of your real estate transactions that you'd like. This is Mark Schreier from century 21 American homes, and I'll talk to you soon.
Mark Schreier Realtor Century 21 American Homes
Please feel free to contact me with questions Email: Realtor@markschreier.com Text: 516.263.9094 Mark Schreier Licensed Real Estate Agent Century 21 American Homes Real Estate Syosset, New York Website: http://bit.ly/2xLPW51 Making Dreams Come True One Home At A Time. #PlainviewNewYorkRealEstate, #SyossetNewYorkRealEstate, #JerichoNewYorkRealEstate, OldBethpageNYRealEstate, #HicksvilleNYRealEstate
