If you are ready to start looking at new houses for sale in Harlem but still need to sell the place you currently own, you are in the common situation of buying and selling simultaneously. Though this is a situation that almost all American homeowners face at some point in their lives, it can still be a stressful one, especially if the timing does not go in your favor. Fortunately, with the help of an experienced Harlem real estate agent and some preplanning, you can successfully navigate the simultaneous transactions process and come out ahead. Here’s how.
Understand the current Harlem real estate market
Before you decide to concurrently list your property and start searching for houses for sale in Harlem, consider the current market. The Harlem real estate market is constantly fluctuating. With such a dynamic community comes constant flux, but today this area is experiencing a neutral market that leans slightly in favor of sellers. If you’re hoping to buy and sell real estate simultaneously, this is critical information. An atmosphere like this might cause you to sell your property faster than you are able to purchase a new piece of real estate. Your experienced agent will be able to help you navigate this situation by offering level-headed advice that comes from a knowledgeable perspective. Flexibility, agility, and local expertise are some of The Catalyst Team’s foremost traits, making them a fantastic asset to your real estate journey.
Have financing options lined up
Because you’ve already purchased a property in the past, you know how much it costs to buy houses for sale in Harlem. If you’re able to sell your current dwelling before you buy, you’ll be able to tap into the equity to cover your closing costs and down payment on your new property. However, if the timing doesn’t work out like this, you’ll find yourself in the situation of needing to come up with a down payment and closing expenses out of pocket. It’s best to have options lined up for this situation beforehand so you can decide quickly if it arises. Here are some choices:
- Secure a home equity line of credit. A home equity line of credit, more commonly known as a HELOC, is a loan secured by the equity in your current house. This type of loan usually has a lower interest rate than other popular loans, and you can choose how much credit to access and subsequently pay interest on.
- Do a cash-out refinance. Take advantage of the record-low interest rates by refinancing your current property for more than what you now owe on it. You will get the difference back in cash and will be able to use it to make your down payment and cover closing costs along with other expenses on your new house.
- Borrow from your 401(k). If you have a qualified retirement plan, you may be able to borrow the necessary cash from it. Talk to your Harlem real estate agent, as well as your financial planner to determine if this is a smart choice.
Make logistical plans
Unless the timing goes smoothly when you buy and sell Harlem real estate at the same time, you’ll find yourself in one of two situations: stuck with two properties (and two mortgages to pay) or temporarily without a home. Having a proactive plan for both of these possible situations is the best way to reduce stress and be prepared for whatever happens.
If you have two properties
When you buy one of the new houses for sale in Harlem before you sell your current one, you’ll have two mortgages on your hands. One option to address this situation is to offer the seller of the property you purchased a lease-back agreement where they rent the property from you for a predetermined amount of time. This works especially well if the seller has not yet purchased a new place to live. Another possibility is to rent out your current unit temporarily until you can sell it or turn it into a long-term rental for extra income.
If you have no place to live
Though it’s less likely in this market, you may sell your current property before you’ve settled on buying one of the new houses for sale in Harlem. In this scenario, you could ask to lease back the property you’ve just sold, or you could seek out a temporary rental to take the pressure off your search and ensure your family has a place to live.
In either scenario, renting a storage unit will reduce clutter, facilitate your ultimate move, and keep your belongings safe during the buying and selling processes.
Working with an experienced Harlem real estate agent
The best way to reduce stress and increase the chances of success during a simultaneous selling situation is to work with a local agent who has experience assisting his or her clients who are buying and selling at the same time. Your agent can guide you as you look for new houses for sale in Harlem and help you set a price, list, and market your current property, so it sells as quickly as possible (and for the amount you want.) If you’re ready to move forward with the simultaneous selling process, reach out to one of the professional Harlem real estate agents at The Catalyst Team for assistance.