But Where Will I Go? 3 Tips for Buying and Selling at the Same Time

"We want to move, but where will we go?" This is the question many Sellers in LA are asking me when we meet to discuss their home sale, and a question that can stop Sellers from moving where they really want to live. But I promise where there's a will there's a way.  Whether you're moving from Santa Monica or West Hollywood I'm choreographing successful Sell/Buy transactions all the time! Here are three proven tips to position yourself well for your next purchase while you're still in your current house.

1. Prep Your Current Property and Open Escrow!! We need your current property to look its absolute best to meet its next owner because buyers pay for updates they can see. If there's something behind the walls we can't see you'll disclose it and we'll figure out a potential credit in escrow, but doing those upgrades before a sale won't net you a return. Focus on prep - you can read some of my prep tips here. Get your house on the market and sell it! Yes, sell your house first. By selling Property A first you will have a complete and total understanding of your net gains and will know what you feel comfortable spending on Property B. So much of the overwhelming part about doing a sale and purchase is the unknown. If you sell you'll know your numbers and most importantly you'll have your equity in your bank account. This will make you look VERY good to the Sellers of your desired property, as will the assurance that you've already sold your house. The Sellers will have great confidence in a Buyer who is flush with cash, and fully ready for their new home and this will help you stand out in a multiple offer situation. 

2. Negotiate a Leaseback A leaseback is when the property has been sold and the proceeds have gone to the Seller's account, but the Seller is staying in the home for an agreed amount of time. Each leaseback is different. Sometimes Buyers ask that the Seller pay the new monthly holding cost in exchange for occupying the property. Other times we negotiate a reduced rate, and finally, if we've got multiple offers we can negotiate a leaseback free of charge for the Seller. That's pretty cool - it's like getting a higher purchase price without having to pay capital gains taxes on it! Leasebacks are often limited to 1-3 months by lenders and that gives you some time to locate and complete your purchase so you don't have to move twice! 

3. Consider a Seller Contingency The option for the buyer who will not sell before they buy! When I purchased my home the Sellers had a Seller Contingency for replacement property which meant that until their purchase was totally complete they could cancel the escrow on me, the Buyer, if that escrow did not go through. So why would a Buyer ever agree to this? Because they want your house! Consider making this more appealing to a buyer by providing pre-inspections and thus limiting their out-of-pocket inspection costs. This way if unforeseen circumstances occur and you cannot complete your purchase you get to keep your current home, and the Buyer walks away with limited out-of-pocket expenses. This will limit your Buyer pool, but the serious folks will hang in there with you!