Selling a home and buying a new one is a complex, stressful, exciting process. In other words: prepare yourself for a serious emotional roller coaster!
As most people only buy and sell homes a couple of times throughout their lives, it’s not an event they get lots of experience with. Yet, when it comes to real estate, knowledge is power.
Here are the top five secrets you have to know before you sell your house and buy a new one.
You Should Get a Pre-Inspection
The importance of investing in a home inspection when purchasing a house can’t be understated. Pictures and showings only reveal so much about a house, while home inspectors give you a better perspective on the whole home. When you put in an offer for a new home, it’s integral to add the results of the inspection as a contingency to give yourself an out.
If you have a sell house fast mentality, you can also get a pre-inspection. During this process, the inspector will generate an unbiased report about what needs to be done. This will help you with pricing and present your home in a transparent, engaging manner that attracts buyers. The potential buyer will know what things need to be dealt with and trust that you aren’t hiding anything, which can aid with negotiations.
Pre-Qualification is not Pre-Approval
It’s a common misconception that pre-qualification and pre-approval are interchangeable terms; this is not the case. A pre-qualification is an initial screening that gives you a better idea of what you can afford when looking at homes. It is not the same as getting approval from the bank, which also looks at your credit, debt, proof of employment income, etc.
If you put in an offer without a pre-approval, there’s an increased risk that the sale will fall through. This experience is disheartening and causes financial and emotional turmoil for all involved. Start with a pre-approval before you start shopping around for a new home.
Having the Right Realtor Matters
Having the right realtor on your team can make all the difference when selling your home. Ideally, you’ll work with someone who has proven results in your area, with homes similar to yours and in-depth market knowledge. You want someone who loves their job and operates with integrity. In other words, their motivation should be getting you in the right home, not just their commission.
Keep in mind that there’s a difference between buyers’ agents and sellers’ agents. You’ll likely want to work with one agent while selling your existing home and purchasing a new one, but you always have the option of shopping around for the best realtor.
Some Upgrades Aren’t Worthwhile
Don’t make the common mistake of dropping thousands of dollars into upgrades that won’t give you a sufficient return on investment. Instead, invest in a few strategic upgrades to make your home more appealing on the market. Upgrade any noticeably damaged or outdated fixtures, add a coat of paint, and talk to your realtor about sales potential before spending resources on upgrades.
Keep this in mind when looking at homes too. You can always negotiate to make the upgrades yourself. Additionally, don’t be tricked by some shiny new appliances if there are serious underlying issues with the house. As stated by mortgage professionals, instead, invest in a few strategic upgrades.
Professional Cleaning and Staging is Underrated
Finally, it’s often more valuable to invest in professional cleaning and staging than it is to do major home upgrades. A first impression is fleeting; you only have one chance to shine. Potential buyers are more likely to be attracted by some nice landscaping and a clean, staged home than a new furnace (which they’ll negotiate over anyway).
Keep these five trade secrets in mind when selling your home to buy a new one. Work with a reliable realtor, keep an open mind, and never, ever skip the inspection.
