Regardless of the state of the real estate market, buying and selling a house at the same time is a very complex operation. that can only be described as audacious, and that will require a series of complex tasks. You’ll have to juggle a lot of things at once, and you’ll never stop wondering whether it’s the right time to do this or that. However, perfect timing only exists in a perfect world: in reality, there will be overlaps in most cases, and you’ll need to be prepared to deal with them. To that end, we’ve put together some tips and advice on how to buy and sell at the same time.
How do you keep control when you’re buying and selling at the same time?
One of the most important things to remember when selling and buying a property simultaneously is to remain calm and in control of the whole process. Here are a few simple ways to manage stress during the process:
- Draw up a comprehensive plan and set realistic expectations.
- Always seek expert advice on key issues where you don’t have much experience.
- Set your criteria and establish precisely the type of property you’re looking for.
- Make sure your home is ready for sale, that the home staging is done and that the documents are ready.
- Prepare a back-up plan, so you’ll have a way out and options if the unexpected happens.
Bas de vignette: Having a complete plan will make the process much easier.
How can I buy and sell a property at the same time?
In an ideal world, as soon as you put your home on the market, a buyer makes you an offer that suits you and is flexible enough about the closing date, giving you enough time to find a new home and move. But since this rarely happens, here’s what to do when you want to sell and buy simultaneously.
Knowing the value of your property
Before you start planning the purchase of your new home, have the one you already own appraised. That way, you’ll have a better idea of the profit you could make and the approximate amount you’ll be able to spend on your new home.
When having your home appraised, deal with at least three different real estate brokers and ask them what their price would be. These professionals will also be able to give you advice on what needs to be improved to increase the value of your property. By working with professionals to enhance the value of your property, you’ ll also maximize its potential and get the best possible price.
Assess your financial situation
One of the most important aspects of all this is to prepare the financial aspects. You need to know how much equity you have in your current home, and how much you’ll be able to devote to buying another. Plan a backup plan – whether it’s money you’ve set aside or some form of financial assistance program you can use.
And don’t forget that when you’re planning to buy and sell a home simultaneously, you’ll also have to deal with other expenses. For example, many people forget to factor in moving costs, which come with
Retain the services of a good real estate broker
A good real estate broker is essential to be effective in such endeavors. Once you’re ready to put your home on the market, conduct a thorough search for the best broker you can find. These professionals will know the best ways to sell your current home and how to go about negotiating a good price for a new one.
A reliable, experienced real estate broker is essential to making the process of selling and buying a home simultaneously easier and simpler.
When you’re interviewing real estate brokers, be sure to prepare a list of questions to ask them. This way, you’ll be sure to have all the information you need about buying and selling a home, and will be able to follow every step of the process and stay in control.
And if you decide…
As we’ve already said, ideal situations are rare, and you’ll most likely be forced to buy or sell first. Here are some useful tips for each case.
… to buy first
You’ve found the perfect home, you want to buy it, but you haven’t sold your property yet… or maybe you haven’t even put it on the market yet? Don’t worry: there are ways to make it work so you don’t miss out on such an opportunity.
Before you decide to take this step, check whether your finances allow you to do so. Ask yourself if you can afford to pay two mortgages – and for how long – and if you have enough assets for the down payment.
If you’ve already found the perfect home, but haven’t sold your property yet, don’t despair. There are ways to make it work.
Your real estate broker can also help you with the financial aspects. He can talk to a lender and negotiate more advantageous terms for you. It may also be advisable to take out a
The best scenario is to sell as quickly as possible. That way, you’ll avoid having to pay two mortgages. With this in mind, however, it’s also important to bear in mind that you may have to sell your home at a lower price than expected. On the other hand, if you wait to put your home on the market, you’re more likely to make a better profit.
… to sell first
If you don’t like the idea of paying two mortgages at once, or are financially unable to do so, selling your home before buying another is your safest option. That way, you’ll be sure of having the money you need for a down payment, you’ll have a better chance of being able to count on pre-approved financing, and your debt-to-income ratio will drop.
There are many factors beyond your control when it comes to selling a home. But there are things you can do to improve your chances of success.
First of all, make sure your home looks its best. De-clutter, clean and repair what needs to be repaired. It’s also essential to find an excellent real estate broker who will help you determine the right price and be your ally throughout the process.
And above all, have a plan for the transition period between selling your home and buying a new one. To do this, you’ll need to set aside some money for expenses such as housing – because you’ll have to live somewhere. If the buyer is in no hurry to move, it might be a good idea, for example, to pay rent: you continue to live in the house until you find a new one, and you pay rent to the new owner.
In conclusion
Selling and buying a home simultaneously won’t be easy or stress-free, but it’s highly conceivable. With expert help, planning and patience, you can stay ahead of the process and be in a much better position.
At Groupe immobilier Katia Samson, we have all the tools and contacts to make this process easy and worry-free. Contact us today to plan your next real estate transaction.
In collaboration with Matthew Schwimmer