A:   First take a deep breath…..exhale, now let’s begin.  Purchasing another home with the equity you have in your current home is what we refer to as a contingency deal.  In order to close on a purchase you must first close on your current home. The sequence of events is as follows.

1.     Discover your current homes value in the present market.  Every market is different but one constant that remains is that overpricing a home leads to a listing that sits on the market longer than it should. Carefully review the comparables in your area and get your house on the market with the correct price. 

2.     Go over all costs. These are determined by  bank payoffs, appraisal fees, closing costs etc. so you can view what type of down payment you will walk away w/ to put toward your purchase.

3.     With your approx. down payment we can now go into what price range works best for your situation in obtaining a new home. This is based on estimated down payment, current interest rates, buyer cost etc.

4.     Once we determine what price range is comfortable for you we need to obtain a pre approval from a reputable lender for the borrowed amount we will need. Some homeowners ask” Well why would I need to do this if my home is not yet sold??” The answer to this is why go through the whole process of selling only to find out a bank will not lend to you the amount needed to take the next step. The pre approval is normally valid for 3-5 month’s.

5.     Once we have gone over costs, determined price range, and obtain Pre Approval we market the home. Remember we need qualified buyers who are not going to hold us up on the other end of the transaction. We may have to disclose that a certain time frame may be needed to close.

6.     Once the home is listed, I urge you to go over properties you are interested in. I will send listings your way as they hit the market. Open Houses and virtual tours are our friends in this stage.

7.     As soon as a strong offer comes over comes our way and contracts are pending we begin an aggressive viewing plan. Remember we can not put an offer on a house until yours is in contract (escrow). Another point to remember is that there are a fraction of homeowners who may not be interested in entertaining a contingency offer. Many will, but just something to put in our heads while searching. Normally this is noted on the MLS for us to know beforehand.

8.     We are now in Contract on your present house, we have found a house for your next move, and the home owner accepts your offer.  You will now need approximately $10,000 liquid to put into escrow when you sign contracts with your attorney.

This is a brief rundown on getting you from your present home into your new home. Of course there is a lot of leg work that goes on once contracts are signed but your attorney and I will be there alongside you to coordinate all the deadlines and closing times. It sounds complicated but rest assured we sell homes like this all the time.

Joe Marcello

United National Realty

1-917-685-4698