Move Up Buying? 3 Options You May Not Have Thought About

Simplifying the Buying + Selling Process

Homeowners consider buying/selling for a number of reasons - closer commute to work, cashing out equity, a bigger/smaller home, or even for a different style or age home. For those wanting to use the equity from their current home, the process of buying and selling simultaneously may sound a bit daunting

If the idea of cashing the equity from your current home and purchasing a new home sounds appealing, but you're not sure how the logistics work - read on! 

#1. Trade in Program."Ibuyers" like Zillow, Offerpad and Opendoor often work for people who value convenience over cash - but they typically offer 30-40% below market value. Tens of thousands of dollars in convenience fees! Live Free Atlanta has exclusive access to a Home Swap program through Knock that gives you the desired convenience without losing money on the investment you made on your home. 

Under the Home Swap program: 

1. Knock purchases your new home for you in cash  (this means a more competitive offer that allows you to purchase without contingencies - a huge advantage in this market!)

2. You move into your new home, and using an advance on your equity, Knock continues paying your old mortgage. 

3. Knock pre-pays up to $25k for home prep upgrades, allowing you to get even more from your home. Once your old home sells, Knock sells your new home back to you, adding only a 1.25% convenience fee, which you can actually roll into your new loan amount. 

This adds up to a stress free move, interest free loan to make upgrades before listing, and a full market value price on the home you are selling! In this scenario - you can get the best of both worlds!

#2. Recasting. If you qualify for your new home without selling your current home but still want to use your equity for a downpayment, recasting is a great option. Recasting allows you to purchase without a contingency on your current home, allowing for more competitive offers. You can either list your current home for sale while you still live in it, or wait until you've moved into your new home. Either way, once your current home closes, you'll be able to apply the funds to your new loan, at no charge, in a way that restructures your overall loan amount and payment, but allows you to keep your terms!

For example, you purchase your new home with 5% down. When your old home closes, you apply those funds (additional 15% down), bringing your downpayment to 20% and dropping the PMI and overall monthly payment amount.

#3. Traditional Buy and Sell with a Contingency. We have numerous buyer/seller clients who opt for the traditional route each year! Once we get your home on the market and under contract, we help find you a home! Then, we write an offer on your new home, giving you contingencies for extra protection, and line up the closings. By opting for offers with strong financing and working with reputable partners (attorney and lender), we can follow this process and ensure everything is going smoothly! We can look for things like 24-48 hours of occupancy after closing to make moving easier, an in-between short term rental, or options like PODs that make moving simple!

The Atlanta market continues to move quickly as sellers take advantage of low inventory and high demand, and buyers have increased buying power with historically low rates. 

Not sure where to start? Schedule a no commitment consultation and we'll go over your unique options and make sure you know the value of your home in today's market!