Selling a home is complicated enough on its own without adding in selling your existing Albuquerque home, where a whole new set of challenges can arise.
One question anyone in this position must consider is how to deal with your existing mortgage during the selling process. If you happen to be in this situation, there are some important factors to consider, such as:
- How much you still owe on your loan
- How much your home is worth
- How quickly you can sell your existing home
Although it may seem overwhelmingly complex to think about, it all boils down to finding some way to satisfy the debt you currently owe as you sell your your existing home and buy a new one.
As a seller, you obviously want to sell your Albuquerque home for a value that is greater than your outstanding mortgage. The money from the buyer first goes to pay back the lender and whatever remains will go to the seller. Ideally, that money is used to pay the down payment on your next home and everyone walks away happy and satisfied.
Timing is Everything
No doubt about it, It can be tricky coordinating buying a home while selling my Albuquerque home. So it’s easy to end up without a home of your own for a period of time. With this in mind, you should plan on some other place to stay while you are closing the deal on your new home, such as a short term rental or possibly staying with a friend or family member.
Selling My Albuquerque Home In A Down Market
Another potential dilemma is putting up an Albuquerque home for sale in a down market, where you can’t get a buyer to pay more than your existing loan. If this happens, you will need to find a way to cover the difference, essentially paying for the privilege of moving out of your home. Some folks need to move in quickly for whatever reason so you need to be prepared in order to close the deal. Check out our great tips to sell your home.
When You Buy Before You Can Sell
Most lenders will be cautious about offering you a new loan if you already have one on another property that is currently outstanding. If you do choose this route, the type of loan option you will want to consider is called a bridge loan.
Bridge Loan Definition – A short-term loan that is used until a person or company secures permanent financing or removes an existing obligation. This type of financing allows the user to meet current obligations by providing immediate cash flow. The loans are short-term (up to one year) with relatively high interest rates and are backed by some form of collateral such as real estate or inventory.
Renting Out Your Current Home
A popular solution to buying before you’ve sold your current home is to rent it out to cover the mortgage and any other costs. Keep in mind that you’ll be taking on new responsibilities as a landlord. Another possibility is to outsource these responsibilities to a company that specializes in project responsibility. You will want to look into everything renting requires so that you know what you’re getting into as a landlord.
Knowing Your Options
As you can see, the right move to make really depends on where you’re standing. Ideally, you will be able to sell your Albuquerque home for a profit around the same time you’re allowed to move into your new home. The best thing to do in this situation is to speak to a qualified Albuquerque real estate agent and learn about your available options. The bottom line here is the more prepared you are, the better the financial outcome will be.
If you considering selling your Albuquerque home, we utilize the latest, cutting-edge, real estate marketing tools to expose your property to the widest range of potential buyers. We are here to get your Albuquerque home for sale aggressively marketed to sell as quickly as possible and for the best price! Our goals are to help you get your home sold, get you where you want to go on time, put you in the strongest negotiating position possible, and do so with minimal surprises.
Our extensive knowledge of the Albuquerque real estate market allows us to guide our clients intelligently. Whether you are looking to buy, sell or invest, our mission is to provide you with exceptional customer service and assist you throughout the transaction – start to finish. Selling my Albuquerque home while buying a new one is complicated, but we have helped many sellers achieve their goals.
Please call us today or fill out the online contact form and let us know how we can best serve your Albuquerque real estate needs. We look forward to speaking with you!