How to Buy and Sell a House at the Same Time: 9 Things You Should Know

Buying and selling a house simultaneously can be challenging. The process becomes complex. You might have to navigate the hot seller's market as a buyer and a seller. While you may not be able to control the things that happen during a complicated selling and buying process, you can always do something to ensure a smooth closing.

There isn’t a right or wrong way to buy or sell a home simultaneously. Your alternatives vary based on how much risk you’re ready to take and what you can afford. Understanding your market can enable you to set the appropriate expectations before listing your home for sale or shopping for a new one. Here are seven things you should know about buying and selling a house at the same time.

Consider property valuation

Before you begin planning to buy and sell a house simultaneously, it's essential to get a clear picture of your current home's worth. Property valuation gives you a property's total market value depending on its condition, location, and other factors. It helps you know your house’s fair market value.

You can use free instant valuation tools and get three or more real estate agents to value your property. They have the knowledge and skills to identify your house's unique features and the improvements you can make to increase its value for more ROI. This ensures you start with an asking price you'll have to lower a few days later.

Organize your finances

Before beginning house hunting, determine whether you can afford to buy it. Note that your current home's equity won't be available until the sale's closing, meaning you'll require some cash reserves to cover the new house's down payment. Alternatively, you can rely on a bridge loan (a short-term financing method) to bridge the gap between selling and buying.

If you decide to purchase a house first and your old one doesn't sell immediately, you can end up with two mortgage payments, making them hard to balance. If you live from paycheck to paycheck, this option isn't for you. Nonetheless, a bridge loan could be your best option if you have a solid income and low monthly debts.

Consult a mortgage broker before listing your home

Before starting with your house selling and buying plans, consider involving an experienced local mortgage broker to work with you and your real estate agent to help you determine how much you'll get from your house sale. They'll also help you learn how much you'll need for the purchase and can qualify for. A mortgage broker can also help you determine if the sale will affect credit and how much. They can also advise you on whether to buy and sell your house first. So, get a mortgage broker on your team as early as possible.

Get your house ready for sale

If you want to sell your house at the highest possible price, it is imperative to get it ready for sale. Landing the highest offers and serious buyers is the hardest part of home selling. Start by understanding your property's value and declutter and depersonalize your space. Minor updates and repairs you can do include paint touch ups, installing Energy-Star certified appliances, bathroom fixtures, and energy-efficient lighting. You can also repair your roof if it has missing shingles or leaks. Consider touching up your exteriors and removing odors that can turn off potential buyers.

Know how to handle complex logistics

The house buying or selling logistics can be complex to handle, and when they both happen simultaneously, it can be quite overwhelming. These logistics may include timing your property's sale and purchase, negotiating possession and moving dates, and arranging your things to get ready for the move. With the help of an excellent real estate agent, you can navigate the logistics seamlessly.

Consider buying with a contingency to sell

Most people find buying with a contingency to sell ideal. Place an offer on your new home, and the closing is contingent on getting a buyer for your old home. You'll move once and won't need to worry about handling two mortgages. While some sellers are ready to wait, it depends on the market conditions and the seller. Home contingencies can weaken your offer. If there's another buyer without contingencies, the home seller will likely prefer them. Consult an experienced real estate agent concerning the odds of buying a house with a home sale contingency.

Assess the real estate market

Decide whether to sell your existing home or purchase a new one first. Conduct a real estate market assessment to help establish a game plan for selling and buying the property. This is especially crucial if you're buying in one market and selling in another, so understand both market conditions. Find out how much time it takes to sell and buy to ascertain whether you're in a buyer's or seller's market.

In a buyer's market, the supply of houses is higher than the buyers looking to purchase, making it an excellent time to buy your new home. In a seller's market, the demand for properties is higher than the available buyers, making it a perfect time to sell your existing home.

Make room for compromises

Buying and selling a home at the same time can be stressful. The people buying your home and the ones selling to you are also under pressure. Bear that in mind when issues arise. For instance, if the buyers require additional escrow time due to a problem selling their house. Avoid expecting too much from the people selling a new home to you. You should also be ready to give your home buyers anything they need. Learning how to compromise can be helpful, mainly when dealing with two or more escrows.

Work with one real estate agent

The simultaneous buying and selling house process can get messier when juggling agents for buying a new home and listing your old one. Consider using one agent for these transactions to simplify the process. Giving control to one agent helps you ensure that both home transactions close simultaneously.

Endnote

While buying and selling a house simultaneously can be challenging, you can sell your home fast to reliable house buyers such as Proud Start Real Estate Solutions for cash to ease the process. Use these tips to sell and buy your home at the same time.