There are a variety of reasons why you might be looking to sell your home. Perhaps you want to size up or size down depending on your family situation. You may even want to upgrade after a big raise or make a move due to a transfer or career change. If you are planning to sell your home, there are a few decisions you're going to have to make. For starters, do you plan to sell your home while buying a new one? You most certainly don't have to, as some buyers choose to rent out their second properties. If you do however need to sell your home while also purchasing a new one, here is everything you need to know regarding the steps of the process.

•  Determine the Value of Your Home

You're going to have to figure out what your current home might sell for before searching for a new one to move into. This is because being aware of what your home will likely sell for will allow you to better decide how far you can stretch your budget when looking for a new property.

•  Discuss Options with Your Lender

Any savvy home buyer will also discuss financial options with his or her lender prior to exploring the markets for a new one. Your lender might actually be able to provide you with tons of helpful advice when it comes to deciding how much of a mortgage you will be able to afford and whether or not you can afford to carry two mortgages at once. When making calculations, don't forget to factor in fees, taxes and insurance payments.

•  Research the Current Markets

Buyers who get the best deals keep up with the markets. This is because they are aware of just how long properties tend to stay on the market, allowing them to make their move at exactly the right time. Researching the markets can also give you an idea of where you might want to move, what amenities you're looking for and what all you can reasonably afford.

•  Prepare Your Home For Sale

Once you have established a budget, weighed your options and done your research, you should then be ready to begin preparing your home to enter the market. Make any small repairs that are needed, tidy up the exterior and interior of the home, give your walls a fresh coat of paint, stage your furniture and don't forget to have the property thoroughly cleaned. If you aren't wanting to go through all of the hassle of handling the preparation of your home, you can always hire a professional to get the job done. When the repairs and the de-cluttering are done, you might then want to have the home inspected to ensure you didn't overlook any issue that may come rearing its head later.

•  Start Your New Home Search

Know how much you want to spend on a new home and have already gone through the process of preparing your existing one? If so, you are now ready to begin searching for a new place. It's recommended you initially keep your search rather broad so that you can get an idea of where the markets are. You can then gradually narrow your home search once you have some kind of understanding of where it is you want to live.

Now What?

            If you have gone through all of the above steps, you are probably wondering what's next. Well, the answer is quite simple. You are now ready to make a deal that works best for your home buying situation. Although you are excited to get into a new home, you should proceed with caution if you still own a home. Here is a look at two different options that can make the processing of selling your home while buying a new one less of a hassle.

•  Contingencies

A contingency is an agreement that is requested by a buyer in order to provide him or her with protection during the deal making process. Buyers who are simultaneously selling their current home could benefit from a contingency that allows them to move their things into the new property before closing. Don't think there's nothing in it for the seller. Contingencies are often included in real estate deals because they provide the buyer with confidence, thus raising the chances of selling your home at market value.

•  Temporary Housing

Those who are juggling the purchase of a new home and the selling of their current one are also given the option of looking for temporary housing in order to avoid having to demand an early move-in contingency. As a matter of fact, moving into a rental or moving in with a family member could allow you to hold out for a better deal. This is because you can let your property sit on the market a bit while still being able to shop around for a new place to call home.

            Selling your home while buying a new one can be tricky at times, which is why it's always a good idea to seek the advice of a professional. Depending on where you are planning to move, your agency might even be able to handle the sale of your home and the purchase of a new one. If you have any questions or concerns, you should always address them with your agent before making any big decisions.

            Your lender will also be able to inform you if you happen to qualify for a bridge loan that could make things easier, so make sure you give your broker a call as well. Some bridge loans will seem appealing but many of them could put you in a tight bind. This is because most bridge loans carry high upfront payments and higher interest rates.

            Whatever you do, don't take out one of these loans before consulting with your agent. If anything, he or she will at least be able to provide moral support as you make some of the hardest financial decisions in the role of both the seller and the buyer.

Have you ever heard of an escrow impound account? If not, you may want to make yourself aware of what it is before selling or buying a home. This is because it could be quite beneficial in some situations. Here's an in-depth look at what an escrow impound account is and in what types of situations it may be helpful.

 What is an escrow impound account?

An escrow impound account is a type of account that establishes terms which allow you to pay property taxes and/or homeowners insurance by automatically collecting a percentage of the annual total along with your monthly mortgage payments.

 Are there any applicable fees?

Setting up an escrow impound account is conveniently free and easy. You can choose to have just property taxes collected each month, just your insurance payments collected or a combination of both collected. If you are being charged to set up an escrow impound account, you are better off looking for a new lender or agency to work with. There should be no reason to charge you for incorporating this type of account when going through escrow. In fact, most agents encourage their clients to set them up because they're free and they're essential when it comes to making you “attractive” to lenders. If you opt to forego the setting up of an escrow impound account, be aware that you will be responsible for your entire tax or insurance bill all at once.

 How is the amount per month calculated?

Calculating how much will be added to your mortgage bill each month with the use of an escrow impound account is fairly simple. All you have to do is divide the annual cost of property taxes and/or insurance by 12 (months of the year). The 1/12^th percentage will be what is applied to your monthly mortgage payments.

 What is an escrow impound deposit?

Generally, all escrow impound accounts have to be opened with a deposit that will cover about 2-6 months of the tax/insurance totals. Opening an account with a healthy deposit protects you in case you there were ever a situation to occur that involved you not having the funds to cover the payment. This also provides you with a little cushion since taxes and insurance rates can sometimes fluctuate throughout the year.

            Escrow impound accounts are popular among homeowners because they let them have peace of mind when it comes to keeping up with the expenses needed to maintain good standing with their mortgage lenders. The terms for the account are usually discussed prior to you applying for a loan, and lenders are more inclined to approve loans for those who have already agreed to setting aside taxes and insurance payments month to month. This is because their risks are lowered when they are assured you will be covered by an escrow impound account. It's also helpful for homeowners because they won't have to pay up for an annual tax payment or insurance payment upfront. An escrow impound account instead allows homeowners to distribute the costs throughout the year to make them more bearable.

            If you are buying or selling a piece of property in a hot market, such as Seattle, you may want to consider including the option of “seller rent back” in the details of the deal. Not exactly sure what “seller rent back” is and whether or not it could benefit you? Here is a look at everything you need to know about this real estate option, including what it could do for your buying or selling situation.

What is “seller rent back”?

To put it simply, “seller rent back” allows the seller to live in a home even though he or she no longer owns it. Basically, you end up paying rent to the person or group that has purchased the property once escrow has closed. You pretty much become the tenant and they become the landlord. Although, it's really important to point out that it isn't as simple as it may seem. Both parties need to agree upon specific lease terms, such as security deposits, the amount of rent to be collected each month, the due dates for payments, what services will be covered by the agreement and who all is allowed to live on the property.

 What are “rent back” options?

If you are looking to get involved in simple seller rent back after escrow, you will most likely need to need to fill out a short form known as a PRDS (seller occupancy after sale). There are some situations where the seller turned tenant will only need to stay in the home for a brief period of time. If planning to live on the property for 30 days or less, you'll need to fill out a CAR form, also known as a “possession addendum”. This form is a bit more lengthy than a PRDS, and you will definitely want to have your agent help you accurately fill out all of the details.

What warnings should I look for?

There are a few different details you should pay close attention to before making any serious commitment. For example, the contract could reserve the right for the new owner to check in on you at anytime, it might delegate all maintenance to the tenant and so on. Just make sure you read over every form carefully to ensure you know what you're getting into. If you still have any questions or concerns after looking over the contract, it's best to consult with your agent. He or she has likely handled a similar situation in the past, which means you'll be learning firsthand from an expert.

             When it comes down to it, “seller rent back” could be a good option if you would like to relieve yourself of mortgage burden but still live in your home. If you are selling your property in a highly competitive market, you may want to consider exploring your rent back options. A real estate lawyer or tax attorney could also be really helpful when it comes to negotiating seller rent back after close of escrow.

          If you happen to be buying a home in a hot real estate market, such as Seattle, WA, you might feel a little pressure to cave when it comes to winning over a seller that is looking to get the best deal for his or her bottom line. This might lead you to think about compromising some of your contingencies. Not sure what they are? Typically, buyers establish contingencies that let the seller know a the deal could be called off at anytime if everything doesn't check out to be as advertised or as agreed upon. This of course providers a buyer with more power during the sale, allowing them to make deals and haggle bargains that benefit them.

            However, all bets seem to be off when dealing with a seller in a highly competitive market. Waiving contingencies may appear to disadvantage a buyer, but this isn't necessarily true. As a matter of fact, some buyers in hot markets are waiving their contingencies to get an advantage during the home buying process.

            On the other hand, there are some contingencies that should be carefully considered before making any big moves. Waiving these contingencies could put you at risks you never thought of. Since contingencies vary depending on a situation and the market, here is a look at some of the ones that home buyers should put at the very bottom of their waiver list.

Earlier Move-In Dates

If you have ever had part in a real estate deal, you may already know that things can take time. This is why many home buyers make a request to move their belongings into the home if for some reason the closing is delayed. While this contingency is convenient for the buyer, most sellers feel inconvenienced by it because there are too many unknowns in these type of situations. Moving in early and then having to work out the final kinks could also put the buyer in a bind because the seller knows how much you want to quickly close on the home. After all, you already moved in!

Homeowners Associations

Some buyers are wary of what lies in the details of contracts with homeowners associations, which is why they ask for a homeowners association contingency. Basically, this covers you in case you realize that the rules don't fit your lifestyle. It's just best to do your homework before making any deals to ensure you are looking in a neighborhood that will allow you and your family to maintain your lifestyle. If you have no specific concerns and no problem complying with the rules, waiving this contingency might be a good idea.

Financing

A financing contingency protects the buyer in the instance his or her financing falls through. For obvious reasons, waiving this contingency could lead to lots of problems. First of all, you'll likely look your earnest money. Second, you might be forced to pay all kinds of fees if you are not protected. Nonetheless, if a buyer is financially stable or if he or she has a padded savings account, waiving this contingency might be appealing to him or her.

 Appraisals

Chances are your lender will require an appraisal before letting you proceed with the deal, but in some cases, you might be able to waive this contingency. Just keep in mind that waiving this contingency is not necessarily recommended because appraisals are what provide you with an assessment of the home's value. If you don't have an appraisal performed, you might end up overpaying or settling for a deal that will leave you in high water.

Home Inspections

There are plenty of reasons why you would want to have the property inspected before agreeing to buy, which is why the majority of buyers insist of including a home inspection contingency when negotiating a real estate deal. You can opt to waive this contingency but do so at your own peril. You'll be waiving the right to have the home inspected, so who knows what little (or big) secrets you'll discover after moving in or living in the home for a couple of years. Do yourself a a favor and make sure you have a professional home inspector take a look at the property before you commit. If a seller is persistent that the contingency should be waived, this should be a huge warning sign.

 Title Inspections

If asked to waive your contingency regarding a title inspection, your instincts should kick in and tell you to get out of the deal while you can. There are a range of marks that can be made against a title and you won't know about them unless you have them investigated by a title inspector. A title search will let you know who currently owns the home, who has owned the home in the past and if there are any liens on the property that you should be aware of. At all costs, this contingency should never be waived. Why? Well, because you could wind up owning a home with a title that is riddled with liens. These liens will then become your responsibility, leaving you in a financial bind you never saw coming.

             Waiving contingencies in certain markets could potentially give buyers an edge, but there are just some that should never be touched. If you are planning to purchase a piece of property in a booming market, such as Seattle, it's recommended you discuss contingencies with your realtor before beginning the search for a new home. He or she should be able to facilitate you with loads of helpful information regarding contingencies and the level of risk associated with the waiving of each one. Once you know how waiving contingencies might affect you as a buyer, you will be more inclined to either stand your ground on important matters or strike while the market is hot in order to get an amazing deal. As always, it's best to consult with a professional that deals with these type of situations on a daily basis.