The decision to sell your current home and embark on the journey of buying a new one is a significant undertaking. Whether you're upsizing, downsizing, or simply seeking a change of scenery, the process involves careful planning, strategic decision-making, and a dash of patience. In this blog post, we'll explore some effective ways to navigate the real estate landscape and make the transition from selling to buying as smooth as possible.

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ASSESS YOUR FINANCES​

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Before diving into the real estate market, take a close look at your finances. Determine your budget for the new home by considering your current home's market value, outstanding mortgage, and any potential profit. Additionally, factor in closing costs, moving expenses, and other associated costs. One of the first steps that I recommend to my clients who are doing this is to get pre-approved. Having a mortgage professional take a look at your finances will help determine your new homes affordability & allow you to start researching homes you can move to. 

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BUYING BEFORE SELLING

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If your finances allow it, one option to consider is purchasing your new home first and moving to the new home before selling your current one. Keep in mind that this will require funds readily available for downpayment and the ability to carry both mortgages. The benefit here is that you'll have complete peace of mind and can take your time finding a new home. 

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​SELLING AND THEN BUYING

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This is probably the most common option that I see since many people leverage their existing property to source downpayment. My preferred approach to this is to start by having a mortgage professional look at your finances to determine exactly what your affordability looks like. A big part of this is working with a Realtor that can estimate your net proceeds since that will have an impact on your DTI & affordability. Once you have your preapproval ready and are comfortable, I typically recommend to start looking to homes, really just to get an idea of the properties in your price range. As your search narrows down, this takes you closer to being ready to sell.  

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SUBMITTING CONTINGENT OFFERS​

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A contingent offer works both ways: you can list your home and accept a contract contingent on you finding a replacement property, or you can submit an offer on a new home contingent on the sale of your current one. The ability to do either of these will be completely dependent on how "hot" the current market is. 

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RENTBACK PERIODS​

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Something that my clients have taken advantage of in the past is rentback periods with concurrent closes. Here, you list your property for sale, keeping a longer escrow period. Once you're in contract, you submit offers on replacement properties with shorter escrow periods so the closes occur around the same time. A rentback period is a negotiated time that the buyer will allow you to stay in the property after close. Typically, this is done with the cost that the buyer pays including principal, interest, taxes & any other expenses. That rentback period is then given as a cushion, providing you with flexibility in moving between the two properties.  

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DETERMINE YOUR TRANSITION STRATEGY!​​

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Sam Fitz-Simon proudly calls Pleasanton his home and has been an integral part of the Tri-Valley community since his move from the UK in 2002. With a unique perspective rooted in his educational journey through all levels of schooling in this region, he possesses a profound understanding of its evolution over the past two decades.

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In his role as a Tri-Valley Realtor, Sam seamlessly blends his extensive local knowledge with skills he honed during his tenure at prominent San Francisco startups. Over the past five years, he has consistently outperformed his peers, ensuring that his clients attain the best possible results and have a stellar experience.

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Dedicated to serving the Tri-Valley community, Sam wholeheartedly commits himself to meeting his clients' needs. If you're considering a move within, to, or from the area, don't hesitate to get in touch with him today.