How to Plan the Sale & Purchase of a New Home in Southwest Florida

Selling a home can be a fantastic and exciting process, as can buying a home. But usually, when you have to do one, you also have to do the other, and doing both around the same time can be a stressful, uncertain experience.

To help you through the uncertainty and risk associated with selling and buying a new home, here are some tips and tricks and things to keep in mind.

So, if you need to plan the sale and purchase of a new home in southwest Florida’s electric real estate market, then you’re in the right place.

Step 1 - Develop a Timeline

Ultimately, the process of selling one home and then buying another is one of coordination.

If everything goes perfectly, you can sell your current home, buy another, and move out from the former straight to the latter.

But that’s not the world we live in.

To begin with, you should understand that there are typically three important entities that need to be dealt with: The potential buyer of your home, the seller of your future home, and then you and your family.

All of these individuals have wants and needs of their own. Also, to keep things as simple as possible, try to get an experienced agent to handle both the buying and selling.

Next, take a look at your market. Southwest Florida’s real estate market is hot at the moment - a seller’s market. Speak to your agent and do some research to figure out the best dates and timelines for both selling and buying homes in your niche - from listing to closing.

The most important thing about this schedule going forward is that you should be prepared to either completely ignore it or discard it.

The key is this: be flexible.

Buying and selling a property is seldom a simple process of moving from point A to point B. Unexpected events, people changing their mind, and various contingencies of one kind or another will almost always appear to put a spanner in the works.

As such, you should take all the measures you need to be a nimble and effective operator in a seller’s market:

• Be flexible
• Be financed
• Be focused

Knowing what you want, but also being able to compromise on the details, and having your finances in order will take you a long way.

Being Flexible in a Seller’s Market

There are a number of potential pitfalls to avoid when selling and buying a house in quick succession. You stand either to own two homes at the same time, carrying the financial burden that that entails, or potentially being homeless while you look for a new home.

Alternatively, you don’t want to be pushed by the risks of these two scenarios into either selling your home for below its worth or rushing into buying a home that doesn’t suit your wants or needs.

The key is to have a plan, and then a plan B, and C, and D for good measure. Make sure to line up all your options so you can react quickly to changes in your timeline and unexpected contingencies.

For example, you can line up storage options for your furniture, hotels or houses that you can rent to move into between homes, and speak to friends and family to see what help is on offer. Also, speak to your agent, your bank, and any other relevant professional. They’ll have their ear to the ground when it comes to the precise state of the market, and what works best for your needs and in the market generally.

Today, southwest Florida is a seller’s market. So you can expect that selling your home will be relatively easy and hassle-free, while the buying part will be harder. As such, pursuing both at the same time might put you in a position where your old home is sold and you’re yet to close on a new one. See below for what to do in those situations.

Also, you should understand that this kind of market means that buyers will be more likely to be flexible and fit to your needs. Take advantage of this and make agreements with prospective buyers to give you the best situation for home hunting. For example, you could arrange to stay in your sold home, perhaps paying rent, until you find a new one.

Selling First vs Buying First

The age old dilemma facing home sellers. Do you sell first and then look for a new home? Or close on a new home before selling your old one?

Here are some pros and cons of both:

Selling first:

• Face the cost and inconvenience of having to live in a hotel or rental house, potentially putting your furniture into storage as well
• Gives you “cash in hand” to make financing your next home easier and your offer more enticing to sellers
• You’ll look more “ready” to home sellers, as you’re not still holding onto your old property
• You can take your time looking for a new home, making sure you get what you want

Buying first:

• More convenient from a lifestyle perspective, no need to find interim housing
• Might be harder to find financing, although you could rent out your new home to finance mortgage payments
• In a seller’s market, you probably won’t have to hold onto two properties for too long.

The Trade Off

Ultimately, there are no perfect solutions to the dilemma. The best you can do is to get the help you need, keep your ear to the ground, and make sure you’re in a position to handle all the potential costs.

Either way, the real estate market in southwest Florida is an active one, not stagnant at all, so you’re virtually guaranteed activity on both ends of the deal.

If you're planning on selling (or buying a home) in Southwest Florida this year, get in touch with the Key Real Estate Team online, or call 239-312-3120 today!