Step 1:  Professional Realtor analysis: 

• First, we will provide you an analysis of your current home based on market conditions, time of year, inventory, etc.  You will want to look at your net profit (so sale price less fees you will need to pay in closing)  based on a best case scenario AND worst case scenario to get a range of figures to work within.  

Step 2: Consult with a mortgage broker to determine purchasing power

• It is critical to build a relationship with a mortgage broker who can help you determine what is the best approach to take to making the buy/sell process as seamless and economical as possible.  There are a few different ways to approach the financial aspect of buying/selling: 
  • Make an offer with a sale contingency:  this means you wait until you close escrow on your current home and use the proceeds of that sale to fund the new transaction.  Depending on the real estate market you are working within this may not be the best option for you to get the home you really want. 
  • Request an extended closing: If you live in a hot market where properties are moving quickly you can request a long escrow to give you time to list and sell your current home and use the proceeds of that sale to fund the new home purchase.  
  • Purchase with significant savings: The simplest way, if you have the financial means, is to use your savings to fund your down payment on the new home then sell your old home once the dust settles
  • Purchase with a HELOC – A HELOC, or home equity line of credit, allows you to borrow against the equity in your current home. If you qualify, you could use a HELOC to access money for your down payment, then pay it off when your home sells.
  • Purchase with a bridge loan: A bridge loan is a short-term loan offered by a bank to cover your down payment, just until your sales close. Make sure to talk to your banker about this option early in the process, because not all banks offer this product and it can be hard to qualify.

Step 3:  Identify which areas you would like to focus your efforts on

• As mentioned above, during your Buying Consultation, we will ask a lot of questions about what you are looking for in your new home and your new community.  Pair this with how much you can afford and this will really start to narrow down the geographic area you will want to focus on. We recommend driving through the neighborhoods to get a feel for the area, what businesses are there, people you see out and about, etc.  

Step 4: Find off-market opportunities that are NOT on the MLS.

• Once we have identified which specific areas you are interested in buying your next home, then it’s our job to go the extra mile and see if we can find a home NOT on the market in that neighborhood.  If we can find one, these tend to be the easiest way to make the transition happen because we are able to coordinate the timelines to fit everyone’s schedules.  

Step 5: Once you find a home you would like to make an offer on, we will work to craft an offer that the seller would be willing to accept with contingencies.

• • In a competitive market, we will speak to the listing Agent about the plans of the sellers and see if there is a way to put the deal together that’s advantageous for all.