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SELLING ONE...BUYING ANOTHER
Posted by V.K. [Mel] Melhado P.A. on Thursday, January 18th, 2007 at 2:45am.If you are not a first time home buyer and are selling your current property and purchasing another, there are some interesting scenarios that can occur. If the closings are scheduled to happen within the same basic time frame, a simultaneous closing, you run the risk that you could end up with two mortgages. If you schedule a staggered closing, with a lag time between, you may have to pursue a short term rental and endure the cost of moving twice. There is inherent risk in either situation.
Some people will opt for a simultaneous closing, which unless planned correctly, can be quite risky. Basically, when you are considering a simultaneous closing, you have to analyse everything from all sides to make sure things go as smoothly as possible. You have to take into account the strengths of the buyer, both from a fiscal and emotional level. You also have to look at your ability to handle two mortgages, should it come to a worse-case scenario. The key with a simultaneous close is to make sure that you have a back-up plan ready to put into effect should the first part of the transaction not take place. You need to be smart about it.
I don’t believe that either closing, staggard or simultaneous, is more advantageous. As I mentioned, both have their risks. The best way to have either one go smoothly is to make sure that your closing agent has done most everything in well in advance. That way there will not be any last minute issues that could delay or cause a closing to fail.
V.K. [Mel] Melhado PA
Downing-Frye Realty, Inc.
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