Tips for Simultaneously Buying and Selling a Home
Buying a home and selling a home can be two of the most stressful events in our lives. And, they often happen simultaneously! If you’re looking to buy a home while also trying to sell your home, don’t panic. In this post, I’ll go over a few tips to help you tackle the buying and selling sides of the real estate market without becoming overwhelmed.
Tips for Buying First
If you aren't in a position to buy a home and sell a home at the exact same time, you’ll need to figure out whether you want to buy a home or sell your home first — each has its own set of unique advantages and disadvantages. If you decide to buy first, here are some expert tips to follow:
Request an Extended Closing
We know you’ll be super excited to move into your new home ASAP. But don’t get too far ahead of yourself because it’s typically critical that you sell your home before moving. This is why we recommend requesting an extended 60-day closing to allow you time to get your home ready to list, list it, and give the buyers time to close and be prepared for move-in.
Make Your Offer Contingent on the Sale of Your Current Home
The last thing you want is to be straddled with two mortgages. You can’t expect to ask for too much in this seller’s market as a buyer. But, making your offer contingent on your current house selling is quite reasonable, and most sellers should be willing to work with you. This contingency will offer you a little protection — and therefore peace of mind — that if your house doesn’t sell for some reason, you won’t be legally bound to your new home.
Ask your local lender about a bridge loan
In this market, you need to be ready to act. If you find the perfect next home before selling your current home - a bridge loan could be an option for you. Chances are you have a good bit of equity in the home to secure the loan.
What is a bridge loan, you might ask? A bridge loan is an interim loan to cover a gap when normal financing cannot be obtained. "What is a bridge loan?"
Tips for Selling First
If you need or want to sell your home before you start looking for a new one, consider these tips:
Find Temporary Housing
You’ll need somewhere to live once your house sells and you look for a new home, whether that’s with family or friends, at a hotel, or an apartment or rental home. Give yourself at least two months to find accommodations that will suit your family’s needs, and consider a backup plan just in case Plan A falls through.
Be Ready To Buy
Once your home sells, you’ll want the process of finding a new home to go relatively quickly, especially if you have children in school or a baby on the way. So, get everything in order with the bank ahead of time, including mortgage pre-approval, your budget, and timeline. That way, when the time comes to make an offer to buy a home, you won’t face any delays that could have been avoided and that have the potential to lead to your dream home getting scooped up by someone who is ready.
Know What You’re Looking For
Today’s real estate market moves fast. So, it’s important to know exactly what you’re looking for in a new home. Start a list of must-haves, including location and school system, number of bedrooms, and any amenities you’re looking for. Give the list to your Realtor so they can keep their eyes out for listings that are coming up, and once you accept an offer on your current home, you can get to work finding exactly what you’re looking for.