When you are selling and buying at the same time it can be rather tricky so it is important to plan ahead. Here are some tips for this tricky transitional period.
When you’re buying new construction, it’s possible — even likely — that the construction will be somewhat delayed, or even very delayed. When we bought our last investment property, nearly nine years ago, we bought it off of the plans. The developer was more than six months delayed in turning over the property and we lost our window to unload it before the Great Recession. That said, we were able to hold on to the property and keep it cash neutral until the past few years, when it turned cash positive. Rising rents help.
There are two things we would’ve suggested the couple had done differently: First, building a brand new lake house is enough stress. That project, the wife shared, was nearly a year behind schedule. If they didn’t need to move their in-town residence due to job considerations, the easier thing would have been to simply wait until the lake house was finished and the old lake house was sold.
They could have then leisurely cleaned up and cleared out their primary residence, while looking for a home to buy. Given how hot the market is for homes, we would have suggested waiting until a closing date had been set on the new property, and then put the primary residence up for sale. The risk you take, of course, is that the market then changes, the new home is completed and then it takes quite some time to sell the home you could have sold in a hot market for a lot more.
While it would have been difficult to time the buy and sale exactly, the easier thing is to always buy before selling, because then you can work on getting your new property in move-in condition, or do any work you need to before you live there.
If you need any buying or selling service, we are here to help. Check out all Stonebridge Mortgage’s services.