How do I Buy and Sell a Home at the Same Time?
Published on June 28, 2023 | 3 Minute read
Melanie
Ortiz Reyes
Content Specialist
Buying a new home while selling your current one can be challenging and complex. Coordinating timelines, managing finances, and minimizing disruptions require careful planning and strategic decision-making. Working with a great real estate agent can take a load off your shoulders when navigating this dual journey.
Here are some tips on how to buy and sell successfully in today's market:
First, evaluate your financial position before embarking on the dual process of buying and selling. Calculate the potential proceeds from selling your existing home, factoring in agent commissions, closing costs, and outstanding mortgage balances. Simultaneously, determine your budget for the new home purchase, considering down payments, closing costs, and any necessary repairs or renovations. This will help you set realistic expectations and make informed decisions.
Consult with an experienced real estate agent who can provide guidance on local market conditions and trends. They'll help you sync the timelines of buying and selling, as they know it's crucial to minimize financial and logistical challenges. They will aim for a synchronized closing, where you can sell your current home and purchase the new one on the same day or within a short timeframe. This would be ideal. However, you should be prepared for potential delays or overlapping ownership periods and have contingency plans in place.
Prepare your current home for the market to attract potential buyers and facilitate a quick sale. Declutter, clean, and do minor repairs or updates that can enhance its appeal. With the help of an agent, stage your home to highlight its best features and create an inviting atmosphere. Professional photography and effective marketing strategies can increase visibility and attract qualified buyers.
If you purchase your new home before selling your existing one, note that bridge financing can provide temporary funding. This is a short-term loan that bridges the financial gap between selling and buying, helping cover down payments and mortgage payments until your current home sells. A great real estate agent will help you explore options and understand the associated costs and terms.
Making your purchase offer contingent upon the successful sale of your current home might be helpful if timing is a concern. This will allow you to proceed with the purchase while safeguarding your interests if your existing home doesn't sell within a specified timeframe. Be prepared to negotiate and demonstrate your commitment to completing the sale promptly with a good real estate agent because some sellers may be hesitant to accept contingent offers, especially in competitive markets.
Explore short-term rentals or consider staying with family or friends as a contingency plan. This ensures you're not rushed into making hasty decisions due to time constraints or unexpected delays. It's always best to have backup housing options, just in case.
Buying and selling a home simultaneously requires careful planning, open communication, and professional guidance. By working with an excellent and experienced real estate agent in your market, you can achieve a seamless transition and maximize your outcomes in both buying and selling a home.