Are you ready to start looking for Houston Heights Real Estate? If you are not a first-time home buyer and if you have not already successfully sold your current home, you are in the common situation of needing to buy and sell real estate at the same time. Though this can potentially be a very stressful situation—especially if the timing doesn’t go your way—you can navigate it successfully by working with an experienced Heights real estate agent and pre-planning for possible scenarios. Ready to get started? Here are some tips to help you out:

Get a Good Idea of the Industry

Though it’s possible to successfully buy and sell Heights real estate at the same time regardless of market conditions, you may have to alter your strategy depending on how competitive it is. Currently, Heights houses for sale are increasing in price and inventory is low, which indicates a seller’s market. In this type of market, you’re more likely to sell your home before you find and make a successful offer on a new property. Your real estate agent may suggest that you find a new home and make a successful offer before you list your home as hot homes can sell in as few as six days.

Understand the Challenges Involved

Though the process is known as buying and selling at the same time, it’s important to realize that one will likely occur before the other. The gap between buying and selling Heights real estate could be as little as a few days or as much as several months (or more.) When you have a good idea of the challenges involved in both buying first or selling first, you can come up with plans to address them.

The main challenge that buying Heights houses for sale first presents is coming up with the money for a down payment and closing costs without access to your current home’s equity. You will also need to make two mortgage payments a month and manage the maintenance on two properties.

When you sell your home before you buy, your biggest concern will be finding a place to live and move your belongings to while you continue searching for a home that meets your needs. Many of those who sell first rush into buying a home they don’t love simply because they need somewhere to live.

Addressing the Challenges of Buying First

Though it’s unlikely you’ll find and make a successful offer on one of the Heights houses for sale before you sell your current home, it’s still possible. If you buy one of the median-priced homes in Houston Heights for $517,500, you will need to come up with $103,500 for a 20% down payment along with another $15,525-$25,875 for closing costs. If you don’t have that amount of money in your account, you can consider the following options:

• A HELOC. A home equity line of credit is secured by the home you currently own and gives you access to a revolving line of credit. HELOCs tend to have lower interest rates than other types of financing and you can continually borrow against it during your draw period.
  
  
• A cash-out refinance. A cash-out refinance lets you take out a new mortgage on the home you currently own for more than what you owe on it. You will receive the difference in cash that can be used toward your new home.
  
  
• A bridge loan. Many of those who buy Heights houses for sale before they sell their current home opt to take out a bridge loan to cover the costs. A bridge loan is a short-term financing option with a typical term of two weeks to three years. Though these loans tend to have higher interest rates than other types of financing, you can avoid paying it for long by paying off the loan when your home sells.

The other financial challenge that comes with buying Heights real estate before you sell is paying two mortgages and covering the costs of maintaining two properties. One solution is to offer the previous owner of the home a leaseback agreement where they continue to live in their home for a certain amount of time and pay you rent. You can also choose to rent out your home on a short-term basis until you find an interested buyer or long-term to create an additional stream of income.

Addressing the Challenges of Selling First

In the current Heights real estate market, chances are you will sell your current home before you make a successful offer on a new one. Your main challenge in this scenario is finding a temporary place to live to take the pressure off the home search. A leaseback agreement can also work in this situation if the person buying your home has not yet sold their current home and is willing to let you stay in the house and pay them rent. If this isn’t an option, your best bet is to ask your Heights real estate agent to connect you with a short-term rental. In either case, renting a storage unit can be helpful so your temporary housing isn’t cluttered and to give you a jump on the moving process.

One of the best pieces of advice for those buying and selling homes at the same time is to work with an experienced Heights real estate agent who has handled these types of situations for other clients. A professional agent can give you advice on timing, connect you with other professionals in the industry you’ll need to work with, and walk you through both the buying and selling processes.

Ready to take the next step in your simultaneous buying and selling situation? Reach out to one of the trusted Heights real estate agents at Miles & Co. for expert guidance. 

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