From One Florida Home Loan to Another: The Emotional Impact of Bridging
Those attempting to buy and sell a house simulataneously may be familiar with bridge Florida home loans and may certainly wish to take advantage of them. But the financial benefits of such loans don’t eliminate the emotional strain that comes along with such a process.
A recent survey conducted by Realestate.com was taken of 550 bridging home owners - those looking to buy AND sell at the same time. The results magnified the fact that this can be an unnerving ordeal. Especially in the current shifting market, highs and lows abound.
“Many people underestimate the emotional overload of selling one home and buying another at the same time,” said Holly Slaughter, consumer experience expert for RealEstate.com.
Results of real estate survey
Nearly half of the respondents (42 percent) agree that the uncertainty of knowing how quickly their home would sell was difficult or more difficult than expected, and considered that time the most significant emotional low in the process.
Sixty-two percent of bridging homeowner respondents were successful dual-closers, meaning they were able to close on their existing home and move into their new home without a significant lapse in time.
Said Slaughter, “For most bridging homeowners, success means moving seamlessly from one residence to another, since most of us don’t want the hassle of living in temporary housing or the expense of paying two mortgages. It’s notable that only about two-thirds of bridging homeowners can carry it off, and that’s why setting expectations ahead of time is an important part of managing the stress.”
For a successful briding home owner experience …
… follow these guidelines:
1. Begin by researching the value of your home with free online services, like HomePriceCheck.com, which provides a good starting point.
2. Engage with a Realtor early on to get a sense for how quickly similar homes in your neighborhood have been selling. Determine fair market value. You’ll need to make an educated guess about that timing in order to plan your move into the new home.
3. Invest in a home inspection (and repairs) before putting your home on the market to save time and hassle down the road, when any “surprises” about the state of your home could have the potential to complicate or delay your closing.
4. In hotter markets, consider requiring buyers to show proof of mortgage pre-approval — not just pre-qualification — with their offers. In slower markets (such as current Florida real estate), you might require proof of pre-approval within five days of accepting their offer. That way, if the buyer can’t proceed, you haven’t wasted much time.
5. Get the buyer of your old house and the seller of your new house to commit in writing to a specific window of dates and negotiate financial penalties to encourage both to stick to those dates.
Think about a bridge Florida home loan. Understand the financial - and mental - issues at stake throughout this process.
