Location and Logistics in Real Estate

55RedGateRindgeOne of the most difficult tasks in real estate is working out the logistics of selling a house and buying a house at the same time.

Whenever a prospective buyer calls for information on a property, we always ascertain if they are ready, willing and able to purchase, or if they have the encumbrance of a home to sell before one can be purchased.My first advice to someone in this position would be to speak with their REALTOR for a referral to a bank or mortgage lender to make sure that what is being planned is actually possible. Consider the ramifications if you don’t get the price for your existing home that you expected.

Next would be to place the existing home on the market for sale. Make sure your REALTOR includes a clause in your listing contract that says you are selling subject to being able to find suitable housing within a mutually agreed upon time frame of 30, 60 or 90 days.

It is not recommended that you run out and start to look at lots of homes as soon as you go on the market for sale with your own home.  The market today is fairly active and there is a good possibility that what you see immediately won’t be available when the time is right for you to buy. Do, however, diligently research the market so you have a good idea of what is available and what location works best.

Your Purchase and Sales Agreement on the new home should state that the purchase is subject to the successful transfer of your existing property. It is important to avoid the circumstance of making yourself homeless if all does not go as planned.

Once you have loan commitment on the house you are selling and the house you are buying, keep in mind that you will have two separate lenders working to provide closings on the same day in a manner that closes your existing house first so you will have the funds for the 2nd closing, and here is where the logistics can be daunting. If the first house closing is delayed, the purchased home closing will also be delayed, and oftentimes that is hugely inconvenient to all parties.

It goes without saying that if you want to build new, and you need to sell your existing home to do it, you have no choice but to make sure your house is sold, move into temporary housing, and wait for the new house to be ready to occupy.

Call Despres and Associates, Inc. to guide you through the process of selling and buying.