The Secret to Buying and Selling Houses

To buy and sell houses at the same time can be a very tricky thing to do. If you are very wealthy and have the funds to buy a house without needing money to sell yours first, then there are no problems. But not everyone is born equal. Buying and selling at the same time is problematic not because of logistics and coordination, it is also difficult because someone is taking a risk, and that someone is the person selling you the house.

Buying in a Seller’s Market

A seller’s market is exactly what the term means. In a seller’s market, inventory is low because there are fewer homes being sold. Fewer homes mean fewer options and that means that there are not enough homes for every buyer to buy. This is a bad thing because you might not find a house that suits you and your needs.

When buying and selling houses in a seller’s market, it is very common to compete with other buyers on the same house. If everyone meets the asking offer, the seller will most likely rank the buyers according to desirability. And if you are a buyer who also sells, and you haven’t sold your house first to fund buying the new, you will be most likely ranked last. In the case that you have sold your house before that, you still are fighting an uphill battle if the money is in escrow waiting to close. Because at that point, your house is not on the market at all, and that makes the seller think you are not serious enough, ending with still being at dead last.

Buying a home first

Buying your new house first before selling the old one can be a very tricky thing. In order to qualify for owning two homes, it’s preferred to show the seller that you have payment for both homes for 6 months in the bank. You will also need funds for a down payment and all the closing costs. You can borrow money, or tap a savings account to be at little risk for repayment. This applies only if you are in a seller’s market because you still need to sell your house.

Renting Back After Selling First

There is an option in a seller’s market that you can ask your buyer to let you rent back the house for 30 to 60 days after closing. If you haven’t found a house first but is eager to sell, then this option would be perfect. You have time to find the perfect home and also face rejections a few times. You don’t have any money problems because your house is already sold.

No Contingency to Sell

A contingency to sell is a contract that the seller accepts the buyers offer to purchase their home, but they agree that the purchase is conditional upon the sale of the buyers existing home. With this you  (the buyer) set a date with a seller, and agree that you will sell your existing house by that date, it not then you get your earnest money back, and the deal is off.

Selling First, Buying Second

This is probably the least stressful option because you will know exactly how much money you have from selling the home. The only negative side is that you will need to move out of your house when the deal closes and probably would need to rent a new place or move back home while you buy a new house. To speed up the process, you should consider hiring professionals like These Guys Buy that will help you out with quick sales.

You are probably wondering how to sell your house fast so that you can proceed with the purchase of a new home. Even though the professionals will take care of everything you still want to take your time with the sale and make sure you have everything ready.

If you find a seller who is willing to take a contingent offer and wait for your hose to sell, then choose that option because it the best option you have, but in a seller’s market, we doubt that could happen.

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Why Does Life Cost So Much And What To Do About It?

Whether you are a millennial, baby boomer, etc. we can all agree on one thing. Life is extremely expensive. In fact, it’s far more expensive for us than it was for our parents. It seems that rates for everything are just about skyrocketing and they don’t look like they will be slowing down in the near future. You would think that I would only be referring to big costs such as buying a home or education. However, everything costs more than what it once was. My kids will never experience gas prices being under $1.50. Nor will they ever be able to buy a pack of Starburst for $0.50. There is no one real culprit for this costly rising issue, but instead, it’s various issues put together. However, there are ways that you can fight against inflation.

Compare

Don’t settle for the rate that is in front of your face. There are so many benefits to comparing rates. You will be able to save money, and you will possibly be able to receive more discounts than if you would have settled. For example, the state of Florida is known as being one of the most expensive states for auto insurance. How much is car insurance in Florida? Average premiums in Florida range around $2050 making Florida the third most expensive state behind Michigan and Louisiana. Instead of settling for an insurance provider such as State Farm, do your due diligence and look around and see what other companies have to offer you. Check out GEICO, Esurance, or Allstate. Different providers offer different perks. This does not only apply to auto insurance. This also applies to home insurance, life insurance, mortgage rates, etc. Looking elsewhere can end up helping you to save hundreds and even thousands of dollars.

Move

This might seem extreme for some of you, but I believe moving is a viable option for all families, especially when doing so will save you a lot of money. Do you live in an expensive state? There are many states with a high cost of living such as Hawaii, California, New York, and Washington D.C. Look for states that might offer cheaper housing and an overall less expensive cost of living. When I moved from Orlando to Fort Lauderdale, I noticed that I would have to spend $400 more a month to support myself. This comes up to almost $5000 a year which could have been put in savings. Once again, moving to a cheaper area is not the option for everyone, but maybe it’s the best option for you.

Budget

For some reason, we all hate the word budget, but it’s what we all need. There is a strong desire in our souls to spend more than we have to. We love to splurge, but the constant splurging is killing us. We substitute our needs for our wants and budgeting attacks this head on. Don’t be afraid to make a budgeting sheet and keep a close eye on your expenses. Instead of going out or taking out make your own food so it can last you for days and save hundreds. Instead of buying those shoes that you don’t need, instead, save that money and put it towards a home that you can afford. At this time every dollar counts. It might not seem like a lot now, but it all adds up. I noticed that I used to pay $20 a month on washing my car. That comes up to $240 a year. In the next 5 years, I would have spent $1200 on car washes. However, this is something that I could have done myself. When you become a better budgeter, you will become more motivated to do things on your own instead of hiring people to do it for you.

Stop upgrading

Every company is going to try to upsell you so be careful. You don’t need all those channels because there is a strong chance that you are not going to watch them all. Something that is nice does not mean that it is something that is wise to have. For most people the basic in anything is fine. I went to buy glasses, and they tried to get me to get added features that would run me an extra $100 which was ridiculous. Many people fall for this because for some reason we have trouble saying no. Say no! Stand up for yourself so you can start saving money. I’m not saying that upgrading is always bad. However, only upgrade if you have to.

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