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We see tons of TV shows in which people go home and kill, but how do they do that? Here are some tips from the pros.
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Buying a home is quite stressful in today's housing market. Try to add the extra pressure associated with selling your current home.

Many homebuyers face this transaction in two stages: whether they move for a new job, improve in a new home, or reduce their workforce in retirement. According to the National Association of Realtors, 89% of regular buyers sold or had plans to sell their previous home.

The bottom line is to understand the changing market, know your financial limits and have plans to avoid moguls in advance, say real estate experts.

"It's a balancing act," says Susan Staffordsmith, real estate agent at CENTURY 21 Action Plus Realty in New Jersey. "It's our job to ensure that customers minimize their costs. They do not pay to move twice or for storage. These things can reach thousands. "

Selling your home and buying another one is a matter of balance so you do not end up anywhere or juggle two mortgage payments. (Photo: Getty Images)

Here is what you need to know.

Can you transport two houses?

The first question sellers wanting to buy should also answer is: can you afford to move two houses if you do not sell yours first?

Those who are waiting to get a mortgage for the second home and already have one on the first must be able to handle the potential monthly payments from both homes. If the amount of debt is too high in relation to your monthly income, the mortgage lender will not approve the loan for second home, says Pava Leyrer, COO of Northern Mortgage Services.

"The lender can not ignore the house just because it's on sale," says Leyrer.

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If you qualify for a new mortgage while keeping your old one, you must make sure that you are comfortable with the idea that you might end up with a double payment. Some buyers do not want this risk, while others are ready to play.

"In markets where houses are superhot, people are more open to transporting two houses.]Explain Leyrer, "because they can not wait to get the house they really want. "

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Other borrowers may need the proceeds from the sale of their own home to fund the down payment or the full purchase of the second home. If you can qualify to make both mortgage payments but you need the equity of your first home to buy the second one, there are two possible options, says Leyrer.

Extract equity: You can get a home equity loan or a line of credit from another bank that can be used to make the down payment.

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Smaller Down Payment: You can also deposit less than 20% and have your mortgage modified later. An amendment does not change your rate, but may reduce your monthly payment. It's also less expensive than refinancing. Check that the lender will do it in advance before banking on it.

If these options do not work for you, you must first sell your home.

Prepare your house for sale

If your old home is what prevents you from buying your new home, it's time to seriously engage in the sale, say the agents. If possible, move so that the house can be sold. Otherwise, declutter, refresh with new paint and solve all problems before putting an inscription for sale.

It is also important to avoid overvaluing the price of your property, which could make it even more difficult to sell, says Leon Robinson, an agent at Coldwell Banker Residential Brokerage in Baltimore.

"It will be on the market and people will start thinking that something is wrong," he says. Even if you get a higher price, it still has to price that price so that the buyer can get a mortgage.

"If the market does not support this price, then you have to turn around and renegotiate the price," he says.

Do not block your offer

Like any homebuyer on the current market where sellers have more advantage, all the offers you put on the new home should be matched with a prior mortgage authorization. Agents also recommend selling your first home before bidding on your second, especially if you plan to pay the total price on the next home.

"In this case, you are a spot buyer in the sellers market," says Dona Crowder, senior broker at Coldwell Banker Global Luxury in San Francisco. "You are in the electric seat."

At the very least, wait until your house is under contract before making an offer for others. In many hot markets, buyers submit low-risk offers. Having to sell your house first makes your offer less attractive. If it's in the contract, it's a stronger offer.

Be prepared to grant a right of first refusal to the seller if your offer accompanies an eventual sale or closure of your home, says Susan Staffordsmith. "If another buyer shows up, you have to remove the reserve," she explains, otherwise the seller can accept the second buyer's bid.

Work with the same broker

If you sell and buy in the same neighborhood, it may be wise to use only one real estate agent for the sale and purchase of your home. In this way, the agent can accurately communicate to the listing agent of the second home what happens with the first. This will facilitate the coordination of two fences between three different parties: you, your buyer and the seller.

"You must know where your buyer comes from. Are they selling their townhouse? Said Diane Notarfrancesco, a CENTURY 21 Action Plus Realty officer. "It can snowball and affect the last person in the transaction."

Have plan B

A big concern for the seller-buyer is that the timing of the two transactions is unsatisfactory and one of the two following consequences occurs: Two houses at a time or nowhere to live.

Take one to two times the monthly mortgage amount of your first home if you wear both homes for a while. This extra money can be used for a short-term lease with AirBnB or VRBO if you have not found a home soon enough after selling your first one.

Another option to avoid divan-surfing: a post-sale occupation agreement with your buyer. This allows you to stay in your home for a specified period after the close of the sale. As a rule, a portion of the funds from the sale is blocked in security deposit for the buyer, who is now the new owner. You receive these funds once the lease period is over and the new owner assesses that the property has not suffered any damage.

Read or share this story: https://www.usatoday.com/story/money/2019/06/06/homes-sale-how-sell-your-house-and-buy-another/1351398001/