Simultaneously buying and selling a home in Minnesota is all about going into the process with as much knowledge as possible. There are multiple ways to accomplish buying and selling a home in MN at the same time, and figuring out ideal timing for your situation will point you in the best direction. The Antonov Group has assembled a list of information to help guide those hoping to take part in buying and selling a home in Minnesota at the same time.

Evaluate Your Financial Situation

Collecting numbers via your mortgage lender, real estate agent (we’ll get to this one!), credit score, financial advisor and current debts will give you a great estimate of what you’ll be working with financially throughout this process. When selling a home in MN, it’s also important to ask yourself:

What is your home’s current resale value? An inspector or agent will be able to give you the best idea of your home’s projected worth, but starting to search online right away can be helpful as well. Just remember that major online sources such as Zillow will often vastly exceed the true estimated value of your home, and that it’s smart to take their projected numbers with a grain of salt.

Feel Out the Local Market

If you’re in a buyer’s market:

• You can find a new home more easily, as there are more homes for sale than there are potential buyers
• A contingency can be attached to your offer, such as one stating that the sale depends on you first selling your home
• You may have a more difficult time selling your home

If you’re in a seller’s market:

• Your home will sell more quickly, because the market has a shortage of inventory, resulting in more buyers for fewer homes
• This can drive up a purchase price, and help give you a more solid number in regards to what you can afford when purchasing your new home
• Finding a home to buy may be more difficult, as there will be stiff competition with other buyers

Check the Amount of Equity That You Have in Your Home

Do you have a mortgage on your current home? If so, The Antonov Group recommends checking to see how much equity you possess. How much money do you have left once you subtract the amount remaining on your mortgage from your home’s current market value.

Hire a good real estate agent

This person will be helping you take part in two of the largest transactions of your life. Make sure they’re someone with experience, negotiation skills, great customer-service, strong instincts and of course, someone with whom you connect well!

Establish a listing price

A vital step towards selling a home in Minnesota is setting an attractive but reasonable listing price. This is an area in which your agent can really shine- so use their skills! They can provide market analyses and their overall know-how to set an amount at which your home will sell quickly but at a desirable price for you, the seller.

Now for the big question: Should you buy before selling a home in Minnesota, or sell before buying?

Selling before buying a home in MN

By selling your home before buying a new one, you can determine the amount of equity that will be available to use towards your future home purchase. It’s also important to remember that this will likely required you to find a short-term place to live in between selling and buying.

If you choose to sell before buying, it can be beneficial to…

…Have a rental option in place for temporary use. This will give you room to breath after you sell your home, and make it easier to find your dream home without feeling rushed

…Seek an accepted settlement contingency on your offer. This is a great move in a seller’s market. By including an accepted settlement contingency (for more help with terms, take a look at our helpful list of MN real estate terms on your offer to purchase, you will maintain that you will only officially purchase a property once your own home sale has closed.

Buying before selling a home in MN:

When you purchase a home before actually selling your current one, you can take your time buying, because you don’t suddenly need a home into which to move as soon as your home happens to sell. You also won’t have to move twice, as you will have a home to which to move right away!

However, note that if you buy before selling a home in MN, you might experience headaches. From a lack of funds due to still possessing a home, or a sense of urgency in selling, which can cause you to accept a lower offer on your home and cause you to miss out on a higher purchase price.

If you choose to buy before selling, it can be beneficial to…

….Ask to close at a later date

This can give you more time to sell your home and ideally boost your equity to use towards the purchase of your new home.

…Request a sale and settlement contingency. This is a great move in a buyer’s market. By including a contingency addendum, you can guarantee that a sale only goes through if you are able to sell your own home. This can protect you against owning two homes at once, and give you the first right of refusal should you have difficulty removing the contingency addendum if a 2nd offer comes in on the property.

…Explore alternative payment options. Do you have a large amount in savings? Could you qualify for a home equity line of credit (HELOC)? Have you and your banker discussed a bridge loan? All of these options provide the chance to make a downpayment on a new home without needing funds from the sale of your home in advance.