As the heart of the film and television industry, Los Angeles
sees its share of new residents moving in on a regular basis. There are also many who move back to where they came from. There is also a fair share of people who want to upgrade to a bigger, more luxurious home as their stars begin to rise. The city and its outlying communities are part of a thriving real estate market. There always seems to be a healthy supply of homes for sale in Venice or houses for sale in Palisades, for example. If you are one of those who are planning to move to a different house, you may find yourself in the situation of buying and selling a home at the same time. This may seem daunting, but this guide can help you through the process.
1. Los Angeles is currently a seller’s market
Although sales have cooled off somewhat, the Los Angeles area real estate market is still slanted toward sellers. The median asking price is currently $941,667
, with 1,178 homes sold this year and an average of 37.7 days on the market. This puts you in the unique and challenging situation of managing both sides of the market. You may be looking for homes for sale in Venice while having one of the houses for sale in Palisades. This will have an impact on how you decide to proceed and in what order you do things.
2. Buying first vs. selling first
It is highly unlikely to close simultaneously as buyer and seller in two different deals. While many factors are outside your control, you can make a conscious decision whether to buy a new home first or sell your old one. It’s a huge market with houses everywhere, such as homes for sale in Venice. It can be helpful to navigate just one deal at a time. There are pros and cons to both buying first and selling first.
3. Pros and cons of buying first
Buying a new home first has advantages and disadvantages:
- You will have a new house to live in when your current one sells
- You will be able to take your time when finding your new home
- You will only have to deal with the expense and time of moving once
- You will have to pay two mortgages until you sell your old house
- You may have trouble qualifying for a new mortgage while still paying your existing one
- You may accept a lower offer on your home for sale to relieve the financial strain
Consider these ups and downs carefully before deciding to make a purchase from, for example, houses for sale in Palisades before selling your current home.
4. Pros and cons of selling first
Your other option is to sell your existing home before buying a new one. This method also has its pros and cons:
- You may have a better credit score without your existing mortgage on your report making a new mortgage easier to qualify for
- You won’t have to manage two mortgage payments while looking for a new home
- You may have to find temporary housing for an extended period of time
- You will incur the expense of renting a place and storage of your possessions
- You may fall victim to rising interest rates before finding a home and locking one in
- You may have to deal with rising prices while searching for your new house
Selling first may be your best option. Discuss the pros and cons with your family and real estate agent.
5. Tips for buying your new home first
If you have the means and decide that you would like to find and buy your new home before selling your old one, here are some tips for how to go about it
Ask for an extended closing - Once you have found your new home and your offer has been accepted, negotiate a 60-day extension on the closing. This will give you more time to sell your old home.
Prepare your old home for the market - While searching for your new home, take all the steps necessary to prepare the old one for the market. The sooner you can start showing it, the sooner you will get offers.
Make your offer contingent upon selling your old home - Put a contingency into your impending purchase of a new home that will allow you to back out legally if your old home doesn’t sell in a reasonable amount of time.
These tips can help you successfully buy a new home and then sell your old one smoothly and quickly.
6. Tips for selling your old home first
If you decide that selling your old home before buying a new one works best for you, here are some tips:
Ask for a lease-back - A lease-back is an arrangement in which you can rent your old home from the buyers for 60 days after the sale. This gives you a place to stay and avoids the expense of storing your things while looking for your new home.
Put your personal items in storage - You want prospective buyers to see themselves living in your home. By removing personal items, you declutter the rooms and take your personality out of the home.
Make a strong offer - Once your old home is sold, you will know exactly how much down payment you have available. This can help you make a stronger offer on a new home. Strong offers are more likely to be accepted, and this can reduce the amount of time it takes to find your new home.
Find homes for sale in Palisades
The Los Angeles real estate market is large and has many homes for sale. It is currently geared toward sellers. If you are planning to sell your old home and buy one of the new houses for sale in Palisades at the same time, you need to carefully consider the best way forward. Contact Campbell Wellman
for expert help from an experienced agent who knows the LA market and can help you navigate both buying and selling.