How to Buy and Sell a Home at the Same Time
Most people can’t afford to buy their next home until their first one sells. This can be a complicated process, one that stresses many people out. There is the worry that you may put your home on the market and find another home that you love that sells while waiting for yours to sell. Others worry that their home will sell so quickly that they won’t have time to find another home in the meantime.
So, what can you do? Here are some tips to help you if you are selling and buying a home at the same time.
Don’t do it alone
You should never go through this process alone. You need to find an experienced real estate agent that you trust to walk you through the home buying and selling process. Listen to his or her advice. Many real estate agents have done this multiple times before with clients so they know the best way to approach it. He or she may have many ideas that you have never considered. Need a top local expert agent?
Think about doing a contingency offer
There are two different ways to do a contingency offer, depending on what happens with your first home. You may want to do a sale contingency, which basically means that you are going to put an offer on a home but it won’t go through until your home is sold. You can start looking for homes without putting your home on the market. Once you find one, you can put an offer in and then put your home on the market. However, the sellers can accept other offers while they are waiting for your home to sell, so it might not be your best option.
The other option is a settlement contingency. You will put your home up on the market, knowing that you won’t have to settle on the new one until the old one sells. This works best when you know that your home will sell quickly. Best of all, it brings peace of mind which can be very helpful when you are buying and selling a home at the same time. All the agents, banks and attorneys involved will work to coordinate the closings on the same day.
You can also request an extended closing
When you ask for an extended closing, you can push back the closing on your new home later than the one or two months that are standard. This should give you enough time to get through closing on your first home so that you can afford the downpayment on your next home, provided you can and want to find short-term housing if necessary depending on the timing of everything.
You may want to consider renting your home back if needed.
If you aren’t able to get an extended closing, you may be able to rent your first home for a few days (or weeks) until you settle on your second home. If the buyers aren’t in a rush to move in, this may be a good option for your family.
A bridge loan may be another option to consider.
A bridge loan is a short-term loan that you can use to cover the cost of your downpayment while you are waiting for your first home to sell. Not all banks offer this loan so you should look into it early if you decide to go this route. Need to get pre-approved for a mortgage?
Because it can be complicated to have to sell a home in order to finance your new one, you should never go through this alone. Find an experienced real estate professional that you can trust. He or she will be able to help you figure out the best way to do this, whether you want to find a home first or put yours on the market first. Either way, you may need to think about adding a contingency to your contract. This means that you will only have to buy the new home, if and when your current one sells. If your home sells quickly, you may want to ask for an extended closing or even the option to stay in the home a few extra days or weeks until yours sell.
If you are buying and selling a home at the same time, get the help you need from one our top local agents now! Our site contains millions of listings across the country to help you find your next property too. With constantly updated homes for sale, you’re sure to go from browsing to buying in no time!