The Complete Process of Buying and Selling a House

Selling and buying a house at the same time is a tedious task which has pros and cons discussed later in this article. There could be multiple reasons to sell and buy a house, such as job transfer, space constraints due to growing family size, better job avenues in the new location, better school for kids, proximity to the area where parents stay, or any other personal or professional reason. The primary concern is "what is the process of buying and selling a house?" and how to accomplish the task. Here, we discuss the process and limitations of each buying and selling process to make the task easier for you.

Is It Good to Buy a House First or Sell It First?

Whether you buy a house first or sell it, each decision has pros and cons, which are crucial to know before moving ahead with selling or buying. Here we go:

Pros and Cons of Selling the House Before Buying

Pros

• The advantage of selling the house before buying is that you have more liquidity in hand, resulting in less responsibility for handling two mortgages simultaneously.

• The pressure to buy a new home within a limited time frame is released.

Cons

• One of the demerits of selling the house first is there's no surety of availability of a suitable house as per your preference and within the budget.

• The cost of moving expenses doubles as you move from an old house to a temporary setup and then to a new house.

• Hunting for short-term rental is a major issue.

• Many homeowners don't let out their property on a month-to-month basis but for a couple of months. Even if you buy the house soon, you may have to bear the rental expenses for extra months.

Pros and Cons of Buying the House Before Selling

Pros

• Won't have to bear the double expense of shifting homes.

• There's surety of a place to go and settle down, ruling out the chance of living out of the box and hunting for short-term rental.

Cons

• The burden of handling two mortgages is added.

• The pressure to sell the house faster is added to get rid of the mortgage.

What is the Right Time to Sell the House?

The best time to sell the house is when the interest rate is lower, which pushes more buyers into the market that help you get a better price, and also when there's sufficient inventory because the shortage of inventory pushes the prices up.

Process of Buying and Selling a House

The process of selling and buying the house involves several steps, which we discuss below:

Hire a Professional Real Estate Agent

The first step towards selling a house is to hire an expert to guide you through the process of paperwork, get the approximate estimate of the price of homes in the market, negotiate for the best price, and assess the market for current and future homes. This will give an idea of the exact money in hand to pay for the new home. Try using the same agent for both selling and buying for smooth functioning to fetch maximum value when selling and minimum investment when buying. The agents have a better idea of the legal aspect of the papers and can guide them efficiently.

Make an Assessment of the Ideal Time to Sell the Property

There are certain months like late spring and summer which is preferable to move as it doesn't come in the middle of the school session. Winter months are never preferred due to snowfall and related issues. The real estate agents give a better overview of the right time to make a move or use the not-so-right period for prep work.

Fix the Deadline to Sell and Buy the House

Setting the deadline is important to save time. Begin with pre-sale inspection of the home(especially older homes) two to three months before you plan to list the property to expedite the selling process. When buyers visit the property, they anyway identify the issues, so it's better to rectify the issues beforehand to save time.

Process to Prepare Home for Sale

Preparing a home for sale has different processes to make it look attractive and spic and span to seek the attention of prospective buyers. Here are some of the processes:

• Declutter the Space - Staying in one house for years leads to piling up of unnecessary stuff. The first and foremost step towards the prep work is to remove the unnecessary stuff, either by donating it to the needy or throwing it away. Another option to sell discarded items is to set up a yard sale.

• Makeover of the House - Check the house properly for any holes or repair work to be done, which may include painting the room with a fresh coat or changing some of the hardware.

• Repair or Replace the Roof - This will enhance the curb appeal because roofs are the first things a buyer looks at. Roof repair is a pricey thing, and replacing the roof is pricier, but it'll fetch an attractive price.

Make an Assessment of the Financial Position

Whether selling the house first or buying first Investment Property the financial assessment is vital because, at times, things don't move as per the plan, due to which you may have to face unexpected situations. In the case of buying a house before selling, you may have to handle two mortgages simultaneously, creating problems in managing finances. It's advisable to have a pre-approval with the help of a mortgage lender for smooth buying. In the case of selling first, things are still better except for finding temporary accommodation.

Get Ready With a Backup Plan

A backup plan is essential to handle the unexpected situations arising in the process of selling and buying a home. If you sell before buying, it may cost you in finding temporary accommodation, shifting and hiring storage if there is more furniture.

Set a Price

Setting the right and balanced price is one of the most important steps of the buying and selling process to attract buyers because too high a price may backfire, and too low a price will bring in loss. To set the price right, it's advisable to consult a real estate agent who maps the sold properties in your area and helps you decide on a reasonable price. If prices are too high, potential buyers don't consider such properties, and too little price raises a doubt in the buyer's mind that something is fishy with the property.

List the Home Online

This step involves listing your home with a real estate agent who will help with the following work:

Take High-Quality Photos of the Property: These days people first prefer to see the property online for basic ideas and quality photos help them decide if they want to see the property physically or drop the idea of considering the property.

Work on Online Appeal of the House: Online listing is essential because many buyers search for home online and check for online curb appeal of the property before considering it. Online platforms are the first impression for most of the buyers after which they decide to contact the homeowner or drop the idea. Therefore, focus on online detailing.

Prepare the House to Show: No matter how clean and well-repaired property is, clean it once before showing it to prospective buyers.

Stay Away and Let Buyers See the Property Without Interruption: When buyers visit the property physically, make your presence scarce and allow them to visualize their furniture and items in their future homes. Your presence may distract the buyer from imagining them in their future home.

Negotiation Round

Once buyers and sellers are on the table, it's time for negotiation, whether you are a buyer or a seller. As a buyer, you would negotiate to fetch the house at a lower price, and as a seller, it's the other way around. The real estate agent helps immensely in this step. On receiving the offer, there are three options: accept it, reject it, or make a counteroffer. Once you decide to go ahead with an offer, consider the form of financing, amount of down payment, closing date, and mode of payment.

Look for a New House

The last step is to look around for a house. When searching for a home in the same city where you sold the house, the same agent can help you find a suitable house. However, if you plan to shift to a new city, find an experienced agent to help you find a home, considering all the criteria.

Conclusion

The process of buying and selling a house has several steps that require professional help from a real estate agent because they know the process better and help you fetch the best price while following all the legal aspects.