How to Buy a Home in Vero Beach Before You Sell

If you’re a homeowner in Vero Beach, Sebastian or the surrounding areas, and you want to move up to another home, but you’re scared because you don’t want to be stuck with two homes, or no home at all, then this blog is for you!

For more information call us today at 772-732-3774!

Let’s face it, if you’re searching for a home in Vero Beach, Sebastian or the surrounding area, you’ve had your challenges. Maybe you’ve made a bunch of offers and had them all rejected…or maybe you haven’t even been able to get into the home to see it before it’s gone. The hard truth is, I don’t see this market changing any time soon. It’s going to be especially hard for you if you need to sell a home first so you can have the funds to buy the home you want. If that’s you, you probably feel like giving up. You might even be saying to yourself, ‘I’m going to wait until the market cools down a little’, or something to that effect. In this video, I’m going to show you 3 ways you can BUY a home in Vero Beach or surrounding areas, BEFORE you sell your old one…and stay till the end…you’re going to love number 1.

The 3rd way…and really this is the most popular…but not because it’s the best way…actually, it’s the worst and most stressful way to do it…..but, nonetheless, it’s a way to do it, and it’s how most real estate agents will tell you it  should be done…..and it is…

Do a Simultaneous Close with a Post Occupancy Agreement

In simpler terms, sell your home and then buy your new home on the same day and then stay in your old home for a few days so you can move everything out and into your new home. There are different variations to this method, but they all pretty much accomplish the same goal, and come with the same stress….because the risk is all on your shoulders.

I’ll explain that later.., So, to make this work, you’re going to need to do some planning you’ll need to list your home for sale first… when you start getting offers, you’ll most likely need to negotiate a longer than normal escrow period so you can go out and find your new home…normal is like 30-40 days….with this option, you might need to ask for a 60 day escrow period…..So you get your home under contract……now the race against time begins. You’ve got to go find a home…and fast. Now this is where the risks come in…

1. You’ve agreed to sell your home. By default, you can’t cancel that contract…well you can, but you might be looking at some legal trouble…that’s a risk.

2. You better be able to find a home you like…cause, you’ve got to have a place to live….worst case, maybe you rent…..but the rental market is brutal…get ready to get raked over the coals.

3. You better hope that the seller of the home you find is willing to sell you the home on the contingency that your home actually sells. Whew…..lot’s of risk…..but, with that all being said…..it is being suggested by agents to their clients….Another think to mention is that whether you pay all cash for your next home, or need to get a loan….if you need the proceeds from the sale of your home, it’s all the same…but I would say to expect an even harder time getting the seller of your new home to accept an offer contingent on the sale of your old home AND getting financing. Food for thought.

Alright, my 2nd way you can buy a home in Vero Beach and the surrounding areas before you sell is,

Get a HELOC! AKA a Home Equity line of Credit

Meaning, borrow against the equity in your home and have it available in an account for when you’re ready to use it. Once you do that, you’ll have CASH to make an offer on your next home, and you won’t be under any pressure to hurry up and find a home. Now there are going to be some conditions that will need to be met before you can do this…and the biggie is….you gotta have equity. If you’ve  owned your home for a long time, and you bought it at a price less than its current value, and you’ve been paying down your mortgage…or maybe you don’t have a mortgage at all…..well,…you’ve got equity. How much, is all dependent on the factors I just mentioned. The other condition is….you need income. You see, the bank…or the lender who is going to give you the access to your equity needs to know that you can pay it back if you use it. 

So, you’re going to need all the things you would normally need if you’re borrowing money. Income, not too much debt, good credit. So if you can check all these boxes, then a HELOC might be the way to go. But, here’s the thing. Most likely, the home you want to buy is going to cost more than the equity that you have in your home. Say, you’ve got $200 thousand dollars in a HELOC, but the home you want is $600 thousand dollars. Now you’ve got to get approved for a home loan and your purchase is contingent on getting a loan….so now you’ve got to pay taxes on that loan and lender fees…..and if you buy that new home before you sell, you now have the new mortgage to pay, you’ve got the HELOC payments to make, and if you have a mortgage on your old home….you have to pay that until it sells…… When it sells, you pay your HELOC off and your old mortgage, and now you’re good to go. It’s a good option if you can do it, because it offers more flexibility than the previous method…and you’re not under the gun to get your home under contract before you can go find a home….but it can get tricky, and it can be costly. 

And now…My number 1 way to buy a home in Vero Beach and the surrounding areas before you sell is with our,

Exclusive Home Trade Program

It’s a program that we offer to our clients and it allows you to make a cash offer on the home you want, move in to your new home and then sell your home at a later date. You’ll only have one mortgage payment….that’s on your new home, and you can even get up to $25 thousand dollars to fix up your old home before you sell it….and there are no fees to get that $25k. So, what’s the catch, right? 

How much does it cost to do this? There is a convenience charge of 1.25% of the loan amount on the new home, there are no origination fees, and you do not pay any interest for the first 6 months of the loan…Oh, and once you sell your old home, and you want to pay off the new loan, there are no prepayment penalties. So, basically, all the risk of the previous 2 options are gone….you don’t have to get your home under contract first, you don’t need to rush to find a home, you can take your time and buy the one you really want, you don’t need to worry about a home sale contingency, and because you’re pre-approved with underwriting, you can confidently make a cash offer not contingent on financing. Couple that with our track record of getting our buyers’ offers accepted, and now you’re playing a whole different ball game.

Also read: 3 Best Sebastian Florida Gated Communities

? Having a hard time purchasing a home and finding the right deal? ?

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For more information call us today at 772-732-3774!

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