Are you a homeowner who is considering an upgrade to a new, larger home? One of the considerations that has likely crossed your mind is how you will manage the time between buying and selling. Below we’ll share a few tips on how to manage the buying and selling gap – and what to do if it extends a bit longer than you’d like.
Start by Analyzing the Local Market
The easiest way to shorten your transition gap is to ensure that you sell your old home as quickly as possible. With this in mind, it’s a good idea to analyze your local real estate market to understand how many homes are for sale and how long your sale may take to complete. If you’re in a larger market such as Silver Spring you might find that your sale moves quicker than if you are selling a home in Olney.
Find out when Your Buyers Want to Move
After you list your old home for sale you will begin entertaining potential buyers as they tour through your home and ask questions about its suitability for their needs. During these conversations, try to get an idea of what each buyer’s purchase plan looks like. Is the buyer simply testing the waters to see what is on the market? Are they interested in closing quickly as they were just hired at a new job and need to find a home? Every buyer will have their own story, and it’s important to tease it out to ensure that you’re focusing the majority of your attention on those buyers that are ready to make a purchase now.
For Longer Transitions, Consider Renting
If it is becoming clear that you may be juggling two homes for more than a few weeks, you might want to consider renting out your old home to generate income until you can get it sold. Whether you list the home as a vacation property and rent to tourists and families on a very short-term basis or you take on traditional month-to-month tenants, it’s likely that you can get a house in Rockville, Gaithersburg or another local community rented quickly. Note that managing a rental property isn’t everyone’s cup of tea, so if you’re averse to the thought of dealing with the hassles that can come along with property management, perhaps it’s best to skip this idea and focus on your sale.
Line Up Bridge Financing as a Last Resort
If necessary, you can turn to bank financing as a last resort to try to help cover your costs while you are transitioning between homes. There are pros and cons to using a bridge loan as a means to stay afloat, but as every financial situation is unique these are best discussed with your banker. Remember – it’s always better to approach the bank before you do anything else, so if you feel that bridge financing might be required be sure to speak with them before you buy your new home.
When you’re ready to buy or sell a home in Montgomery or Howard County, The Speicher Group & RE/MAX Realty Centre are here to turn your dreams into reality. Contact us by email or by phone at 301-710-9920 – we look forward to working with you!