Do you plan on listing your Minneapolis property in 2022? Will you be looking for a new home to up or downsize to at the same time? This situation is familiar to anyone who is not a first-time homebuyer. While the process can be stressful — particularly if the timing doesn’t go as planned — it can still be successful on both ends with the help of an experienced Minneapolis real estate agent and proper expectations and planning. Here are some ways to ensure your simultaneous buying and selling journey goes as smoothly as possible.
How to Buy and Sell Simultaneously
Understand How the Market Affects the Process
Doing a little market research can help you understand the likelihood of your current home selling before or after you settle on one of the Minneapolis homes for sale you want to buy next. The Minneapolis real estate market has been hot, and experts predict it will continue to be that way throughout 2022. With homes staying on the market a short amount of time and new home inventory low, it’s likely you will be able to sell your home before you find a new one as long as you follow best listing practices like having your agent do a comparative market analysis to price it fairly, having it professionally staged, and making efforts to boost your curb appeal.
Your agent will be able to help you take a look at the current market—especially when it comes to homes that are selling in the price ranges in which you are buying and selling—and let you know if you should consider making an offer on a home before you list yours for sale.
Your agent will be able to help you take a look at the current market—especially when it comes to homes that are selling in the price ranges in which you are buying and selling—and let you know if you should consider making an offer on a home before you list yours for sale.
Prepare Yourself Financially
Neither the buying nor selling process is an inexpensive one, and the costs can skyrocket depending on how the timing ends up. The best thing you can do is be prepared for the worst-case scenario, which is closing on one of the Minneapolis homes on the market and being unable to sell yours. In this situation, you will need to be financially prepared for the following:
- Making a down payment out of pocket. Without the equity in your current home, you will need to find a way to make the down payment on your new home out of pocket. If you don’t have tens of thousands of dollars in the bank, you can look at getting a home equity line of credit, a bridge loan, or doing a cash-out refinance. Some in this situation also take loans from their 401(k) retirement plans or sell assets such as land, classic cars, or precious metals.
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Cover closing costs. Closing costs, which can amount to 3-6% of the purchase price of the home, will also have to be paid out of pocket if you buy before you sell. If you’re buying one of the luxury Minneapolis homes on the market for $1 million, your closing costs could be as much as $60,000. In most cases, you will be able to take out a loan for the total cost of your down payment plus closing costs.
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Making two mortgage payments. If you’re unable to sell your current home before you buy, you will have two mortgage payments to make. This can drain your finances quickly if you need to do this for more than a few months. To mitigate the costs, some of those in this situation choose to rent out their current home on a short or long-term basis. Others decide to do a leaseback agreement with the seller of their new home to buy some time to sell their house.
Though you will experience fewer financial concerns if you sell before you buy, you will be in a situation where you need to find a place to live. Most of those looking at Minneapolis homes for sale don’t want to feel pressured to buy a home just so they won’t be homeless. They want to take their time and settle on the perfect property for them and their families. One way to buy some time is to rent a home short-term. You may also be able to obtain a leaseback agreement from the new owners of your home so you can continue living there for a few months while you look for a new place.
In either situation, it makes sense to secure a storage unit at the outset of the buying/selling process. This allows you to clear out your current home and stage it for sale. It also gives you a head start on moving. And, if you end up having to rent a smaller home or live in a hotel room or with friends or family after selling, you will not have to worry about where to put your extra stuff.
In either situation, it makes sense to secure a storage unit at the outset of the buying/selling process. This allows you to clear out your current home and stage it for sale. It also gives you a head start on moving. And, if you end up having to rent a smaller home or live in a hotel room or with friends or family after selling, you will not have to worry about where to put your extra stuff.
Work With an Expert
The best piece of advice for anyone who is getting ready to buy and sell at the same time is to work with an experienced Minneapolis real estate agent who has helped clients with this situation numerous times in the past. Your agent will help you evaluate the market, price your home appropriately, and strategically market your home to ideal buyers. They can also hook you up with homes that have just been listed, will be listed soon, or that won’t be listed to the general public. This can help in markets like Minneapolis that are experiencing a shortage of homes for sale in certain price ranges. Finally, your agent can connect you with other professionals like loan officers, stagers, and those who have rental units to help facilitate the buying and selling processes.
Entering the Minneapolis Real Estate Market?
Are you ready to start the exciting journey of buying and selling Minneapolis homes at the same time? Reach out to trusted local agent Isaac Kuehn for expert guidance and assistance. Isaac has helped numerous clients successfully buy and sell simultaneously, and he can help you do the same today!
