In a "seller's market," these offers can be less attractive. To strengthen your position, ensure your current home is already under contract before making an offer on a new one. Phase 4: Due Diligence and Inspections Once you are "under contract" on both ends:
The title company or attorney coordinate the wire transfers. The funds from your sale are used to pay off your old mortgage, and the remaining profit is applied toward your new purchase. steps to buying and selling a home
Your lender will hire an appraiser to ensure the home is worth the loan amount. If the appraisal comes in low, you may need to bridge the gap with cash or renegotiate the price. Phase 5: The Double Closing In a "seller's market," these offers can be less attractive
This is the most delicate stage. When you find a house you love, your offer will likely include a . This tells the seller: "I will buy your house, but only if my current house sells by a specific date." The funds from your sale are used to
Even if you’ve owned a home for years, lending standards change. A fresh pre-approval letter proves to sellers that you are a serious buyer who can perform once your current house sells.
Minor fixes—like patching drywall or freshening up neutral paint—offer the highest return on investment.
You have two main paths. You can sell first (which puts cash in hand but may require temporary housing) or buy first (which is more convenient but may require a "bridge loan" if your capital is tied up in the first house). Phase 2: Preparing the Sale