Selling a house is already a hassle, but selling and buying at the same time can be a HUGE challenge. Making the process going smoothly requires having a plan and having a plan B if the circumstances change in the process. It usually happens when you need to move out as soon as possible, and what you earned from the sale will be used to buy the new house.
When it comes to buying and selling a home simultaneously, there is no right or wrong method. Your options vary depending on how much you can afford and how much risk you are prepared to take. It also depends on whether you’re facing a buyer’s market, a seller’s market, or both.
Good planning and working with an experienced home buying company can help both transactions go smoothly. Read these tips to succeed in the process.
5 Tips to Sell and Buy a House at the Same Time in Lynwood, WA
You Could Hire Real Estate Agent (But There Are Better Options)
Considering all the steps and paperwork involved in buying and selling simultaneously, you’ll want experienced professionals to guide you through the process. Hiring an experienced real estate agent can provide you a realistic value of home prices in your area and how to price your current property.
You can calculate your equity and what your net income will look like to apply that money to your new home’s down payment and closing costs from that figure.
Evaluate Your Financial Situation
If you don’t have the means to afford two mortgages, include a contingency in your offer that will give you an escape route in case the sale of your current home falls through. You may also consider adding a financing contingency if your new loan approval is contingent on the sale of your current home.
Consider the Market Situation
Timing is one of the most important factors when buying and selling a home at the same time. Getting the timing right also depends on local real estate market conditions.
If You Are In a Buyer’s Market
In this case, selling your home may take longer, so you may want to wait to make an offer on your next home until you’ve signed a contract with a solid buyer.
If You’re In a Seller’s Market
You’ll need to make sure your home is staged and ready for the market in a seller’s market. You’ll also want to make sure your finances are in order so you can quickly make an offer to purchase. When conditions favor the sellers, you’ll have less flexibility to include contingencies or delay the closing date, especially if a seller needs to move quickly.
Time Is As Important As Money
Although you want to make sure you get the best possible deal on the sale of your home, keep the closing process in mind when you negotiate both deals. The goal is to get both the buyer of your home and the next home seller to accept adjacent closings or any necessary contingencies.
Have a Plan B
With contingencies in your contract, you should be able to reschedule closings accordingly or walk away with minimal financial pain.
Consider having these contingencies:
- Find a short-term rental if you’re selling your current home but haven’t found your next home.
- Ask buyers to enter into a rent-back arrangement. It lets you stay in your current home after closing for a short-term period and pay the rent to the new owner until you can move in.
- Afford your next home with your savings, a home equity line of credit, or a short-term bridge loan.
- Rent out your current house and use the proceeds to offset the costs of owning two homes until you can sell it.
A Cash Buyer Can Make The Process Simple and Fast
By deciding to buy first and sell simultaneously, you will want to sell as soon as possible to avoid paying two loans over a long period. Working with a homebuyer company is usually much faster than the traditional selling process.
With I Will Buy House, you will sell in 10 days or less, allowing you to buy a new home quickly.