For some people, the idea of downsizing to a smaller home and simpler lifestyle is appealing. For some, downsizing is a way to cut costs and make home upkeep more manageable. It may allow homeowners with a great deal of equity to tap into that equity and fund early retirement, travel, an investment property, college educations for their children, or an entrepreneurial goal as a career-switcher.
Downsizing has been a common choice for retirees for decades. Often, the idea of a popular retirement destination or moving closer to children and grandchildren means moving to a new state and adjusting to a new neighborhood.
Whatever the case, many individuals, couples, and families take advantage of the convenience of a smaller home or the funds provided by the sale of a large home long before retirement. This typically means selling your home and finding a smaller home in the same area, with both of those transactions occurring at the same time. This creates challenges for timing, logistics, and financing.
Whether you’re staying in the neighborhood because of your career, or you simply don’t have any desire to leave your community, downsizing in Gaithersburg, Maryland, can be a tricky balancing act. Job opportunities, beautiful homes, and quiet neighborhoods make Gaithersburg a popular choice for new buyers, and demand here is fairly consistent. This means there’s a significant chance you could sell your home before you have a new one to move into.
The key to a back-to-back sale and purchase comes down to understanding your goals upfront, creating an organized process, and understanding the wide range of options that are available for financing your purchase while selling your current home. Fortunately, as an experienced lender prior to my work as a real estate agent, I have insight into all of these aspects of the sale and purchase processes, ensuring that I can help you avoid some of the stress associated with downsizing in today’s market.
I’m Your Realtor Resource For Downsizing in, Maryland
While you’ve purchased a home before, buying one at the same time that you’re selling your current home brings with it some unique challenges. You’ll be conducting your own search while making sure that your present home is market-ready for buyers who are interested in touring it, sometimes with very little notice.
While you may be planning to use some or all of your existing equity to purchase your new home, there may be a gap between the time that you find your new home and the time that you close on your current home. That may mean bridge financing or other strategies to help you make sense of your timeline and stay on budget throughout both transactions.
With a background in both lending and real estate representation and many reviews submitted by delighted clients, I have the skill and experience you need to tackle your back-to-back sale and purchase. Our initial meeting, which should take place before you list your current home or begin your new home search, can arm you with several advantages. During this time, I can:
- Help you navigate the pre-listing process
- Share knowledge about local listings
- Prepare you for the complicated balancing act of potentially dealing with two or more contracts at once
Know Your Market
The last several months have seen a shift from a strong seller’s market to a more balanced market in our area. On the sell side, that means that we need to price your home correctly and competitively and make sure that it is well-positioned to stand out among other homes for sale in the area.
On the buy side, however, it also means that you’ll be in a much better position than you would have been even a year ago, with less competition and less chance of a multiple-offer scenario on your purchase. In addition, if you’re planning to pay cash out of the proceeds of your home sale, you’ll save a great deal of money since interest rates are considerably higher than they have been during the last few years.
Learn About Your Options
There are many ways to navigate the time between the sale of your current home and the purchase of your new home. You may be able to rent back your current home until you’ve closed on your new home. You may be able to rent your new home until you’ve closed on your current home. You may be able to tap into your savings or your home’s equity to finance your new home purchase, then pay that money back at the closing of your current home’s sale.
Let’s talk about your goals and the financing options that can get you there. Then, if you don’t have a lender in place already, I’ll be happy to introduce you to someone who can help you get started. Our goal is to minimize the chances of having you juggling two mortgage payments at once.
There are a host of ways to structure the deal, both on the buyer and seller side, so that you are protected and provided with a timeline that works for you and your family. A contingency is a clause within the contract that says you will buy or sell a home under certain conditions.
For example, a seller may add a contingency that requires the buyer to prove they’re financially secure enough to purchase the property. When you’re agreeing to an offer on a home you’re still living in, you can include a contingency that fulfillment of the contract depends on your purchase of a replacement home. Alternatively, since this creates a difficult position for your prospective buyer, a contingency that allows you to extend the closing date might be a more attractive option.
There are a number of contingencies that can provide you with additional time to complete your home purchase, or extend your home sale closing date, and ensure that both sides of your transaction work together seamlessly.
Investigate Alternative Home Options for Downsizing in, Maryland
For many home buyers, downsizing means moving into a smaller home with similar living conditions to the ones you already enjoy. Considering alternatives will give you more options to find a new home.
For instance, you may be searching for a two-bedroom single-family home. But there may be few or none available in your chosen area. For many people preparing to downsize, condos and townhouses provide attractive homes. They have a wide range of amenities you may not have considered and are often easier to care for than a traditional single-family home. During your home search, let me know if you’d like for me to include available condos and townhomes in your search.
Downsizing in Gaithersburg, Maryland, can present challenges, but these roadblocks can be navigated with careful planning and great communication. Working with an experienced local real estate agent is the best way to get all the information you need when it comes to the delicate balancing act of selling and buying a home within the same timeframe.