Congratulations! You have sold or are in the process of closing the sale on your condominium. Now the big question is: How do you start the process of finding your new condominium?
While you are in the process of closing your sale, there are two steps to go through in your search.
First, begin your search. Start this search by going through the Ripco Real Estate buying process.
Second, wait until you have closed on your condominium before closing on your new one. The general wisdom is always sell before you buy.
Why Sell First?
Most experts agree you should close the sale of your condominium before committing to another piece of property. This eliminates most financial risk: You'll know how much money you have for your down payment, and you won't have to arrange for interim financing. In any case be prepared financially. It is wise to have cash reserves sufficient to cover your down payment and two or three months of mortgage payments. If not, you may have to take out a loan or borrow your down payment. In order to qualify for a second mortgage, you need enough income.
One downside of selling first is that you will have to find an interim place to live. You could negotiate a sale-leaseback and rent your home from the buyer for a month or two. Or you could arrange to rent a place temporarily. It is usually cheaper to pay rent plus moving costs than to pay two mortgages with taxes and insurance.
If you buy before you sell
If circumstances have placed you in the position of buying before you sell, managing the two transactions as one if possible. Here are two suggestions:
Structure your offer: Negotiate with your seller to include a long escrow, or make the purchase contingent on the sale of your current home. Such a contingency is a seller's nightmare, but in a slow market the seller may be willing to accept the offer. More important, it gives you an escape if your house doesn't sell. You may want to consult a real estate attorney on the exact wording of your contract.
Secure Financing: Secure interim financing so that you may purchase your next house while your current house is for sale. So-called bridge loans are made against the equity in your current house and cost more than traditional home loans.
Royal LePage Mission
3595 114 Ave SE #110
Calgary AB T2Z 3X2