Are You Prepared for a Quick Sale?

It is a seller’s market in many regions of New Hampshire and Massachusetts, and that means selling your house may happen quickly. It’s not something you can, or should, count on, but it does happen often right now.  Every home sale is different and depends on the current demand for a home like the one you are selling. But given the market, at the very least you should be prepared for the fact that your home may sell quickly.

What does “quickly” even mean? Say for example you just listed your home today – in today’s market, you may have three showings set for tomorrow. So, you prepare and clean your home and by tomorrow night you suddenly have an offer and are told another is coming in. At this point you’d probably be thinking, “Ummm…this is moving much quicker than I thought.”

What if you accept one of those offers? That means your house just went under contract in less than 48 hours of listing it and guess what – you’re moving, typically in about 30-45 days. This means you’d have about a month to buy your next home, pack and move.  Are you ready for this pace?

If you’re trying to coordinate buying a home while selling your own, here are a few steps to start now so finding a fast-acting buyer will make you happy - not panicked.

• Get pre-approved for a mortgage: There are two levels of loan approval, and pre-qualified is very basic. Get pre-approved for your loan amount so things can move quicker and sellers can take your offer seriously. You will get much of the paperwork out of the way, and you will have your actual loan amount approved based on real facts, credit reports, debt to income ratios, and more.
  
  
• Plan for a down payment and closing costs: Look at your savings and estimated profit from the sale of your current home and determine a solid amount you have to put towards this new home purchase. Also, plan for fees and closing costs. These may include the appraisal fee, loan fees, attorney's fees, inspection fees, and the cost of a title search. They can easily add up to more than $10,000, and often run to 5% of the mortgage amount.
  
  
• Know which type of house you really want: Do you prefer a split-level or colonial? Do you want everything on one floor? How much land do you require? Knowing these details ahead of time helps your real estate agent eliminate homes that fit your budget but you would have no desire to buy. Now you are ready to start seeing potential new homes.
  
  
• Know what communities you want to live in: Your real estate agent will be able to pull up listings that fit your needs – 3 bedrooms, 2 ½ baths, fireplace, etc. However, if the home is too far from work or not in a desirable location you are probably wasting time having it on the list. Investigate schools, neighborhoods and what each community has to offer, and come up with specific areas for your search to focus on.

Selling your current home and buying a new one can be an exciting and happy experience in your life. But in today’s fast-paced, low-inventory market, it can move along at a fairly fast pace and as a result, be full of stress. The better you are prepared for what comes next the easier the process will be.

Take a look at our Seller guidebook to learn what you need to know to sell your house.