Determine Your Transaction Timeline By Working Backwards

When it comes to buying or selling a home, it's important to have a clear understanding of your timeline goals. Whether you're a buyer or a seller, knowing when you need to close on a property or move into a new home can help you work backwards to determine when you should list your home or start shopping for a new one.

Let's start by looking at the buyer's timeline. If you're a buyer, you likely have a specific date in mind when you need to move into your new home. Perhaps you have a lease that is ending, or you need to move before the start of a new school year. Whatever the reason, knowing your move-in date is crucial to determining your timeline.

Once you have your move-in date, you can work backwards to determine when you need to start shopping for a home. Keep in mind that the home buying process can take several months, especially in competitive markets. You'll need to factor in time for house hunting, making an offer, completing inspections and appraisals, and closing on the property. If you're working with a real estate agent, they can help you create a timeline that aligns with your move-in date.

A buyer's example: Let's say you know you need to be in a home by June 15th. Your real estate agent tells you it can take 30-60 days to close a loan, with the average being 45 days. This tells you and your agent that you should ideally be under contract by May 1st, give or take a few days. The amount of time it takes to house shop depends on your desires and inventory, but you want to be prepared to shop by April. This means you are going to want to interview real estate agents and lenders no later than March so you can get a preapproval letter and be prepared to put in an offer when you find the house for you. 

If you're a seller, your timeline will likely be based on when you need to close on the sale of your home. Perhaps you've already purchased a new home and need to sell your current one before closing on the new one. Or maybe you're relocating for a job and need to sell your home before starting your new position. Whatever the reason, knowing your desired closing date is key.

Once you have your closing date in mind, you can work backwards to determine when you should list your home. Keep in mind that the home selling process can also take several months. You'll need to factor in time for preparing your home for sale, listing it on the market, and completing the closing process. Again, a real estate agent can help you create a timeline that aligns with your desired closing date.

A seller's example: Let's say you need to move and be in your new location no later than August 1st. Your real estate agent tells you it can take 30-60 days to close a loan, with the average being 45 days. You are going to want to make sure you are under contract with a buyer no later than the end of June, give or take. (In some cases, seller's can close on their home remotely, so if you need to move away before closing discuss this with your agent.) You also want to talk to your agent about average days on market for a house in your price point and in your area. If the average days on market is 90 days, you will want to list your home in March. Always start working with a real estate agent as soon as possible to determine home repairs and anything else that needs to be done prior to listing your home. 

In both cases, it's important to be realistic about your timeline goals. Buying or selling a home is a complex process, and unexpected delays can arise. By giving yourself plenty of time, you can ensure that you're able to achieve your timeline goals and move into your new home or sell your current one with as little stress as possible.

In conclusion, whether you're a buyer or a seller, understanding your timeline needs is crucial to a successful transaction. By working backwards from your desired move-in or closing date, you can create a timeline that aligns with your goals and gives you the best chance of success. Don't hesitate to seek the advice of a real estate professional to help you navigate the process and achieve your timeline goals.