No matter the market situation, selling and buying a house simultaneously is daring and requires you to perform challenging tasks. You will need to juggle many things at once, and you’ll end up constantly worrying about timing. However, have in mind that the “perfect timing” exists only in the perfect world. In reality, overlaps happen in most cases, and you need to be prepared for them. Because of this, we’ve gathered some tips and advice on how to sell and buy a house at the same time.
How to stay sane when you’re about to sell and buy a house at the same time?
One of the most important things when you’re faced with having to sell and buy a house simultaneously is to stay calm and in charge of the process. Here are some simple ways to manage stress during this process:
- Make a thorough plan and have realistic expectations
- Always consult with experts about essential matters that you’re not experienced with
- Define your criteria and know what kind of property you’re looking for
- Make sure your home is ready for sale; staged and paperwork ready
- Make a contingency plan, so you’re covered in case something unforeseen occurs
Caption: By making a thorough plan, you’ll make this process much easier.
How to sell and buy a house at the same time?
Ideally, as soon as you’d put your home on the market, a buyer would come with a perfect offer and flexible closing date that would give you enough time to find a new house and move into it. As that rarely happens, here’s what you need to do when buying and selling a property simultaneously.
Know the value of your property
Before you start planning the purchase of your new house, make sure to get your current one evaluated. That way, you’ll get a better idea of how much profit you can get and how much you can approximately spend on a new house.
When getting your house evaluated, make sure to speak with at least three real estate brokers and ask for their valuations. They will also be able to give you advice on what to improve or change to increase your property’s value. By hiring professionals to help you stage your home, you’ll maximize its potential and get the best possible price.
Evaluate your financial situation
One of the most critical things in this process is to work out your finances. You need to know how much equity you have in your current home and how much you can afford to spend on your new one. Also, make sure to have a contingency plan – either cash set on the side or some form of financial assistance program you can use.
Keep in mind that when you are planning to sell and buy a house simultaneously, you’ll come across some other expenses. For example, many people forget about moving costs, which come with expenses you didn’t expect. When hiring a moving company, always make sure to check for any hidden fees. To avoid them, thoroughly read the contract before signing it and don’t forget to check the small print.
Hire a good real estate broker
Hiring a good real estate broker is crucial to go through this process more efficiently. Once you’re ready to put your home on the market, do extensive research and hire the best real estate broker you can find. They will know the best ways to sell your current home and how to negotiate a good home price for your new one.
An experienced and reliable real estate broker is crucial to make the process of buying and selling simultaneously easier and simpler.
When interviewing, make sure to make a list of questions to ask the real estate brokers. That way, you’ll find out everything you want to know about selling and buying and ensure you’re in charge of the process.
If you decide to…
As said, ideal situations rarely happen, and you’ll probably be forced to either buy or sell first. Therefore, below you can find tips for each case.
…buy first
Have you found a perfect house that you’re keen on buying, but you still haven’t sold your home or potentially even put it on the market? Don’t worry, as there are ways to make it work and not pass on this opportunity.
Before you decide to take this step, you need to make sure your finances can handle it. Ask yourself if you can afford two mortgages, how long will you be able to make both payments, and if you have enough assets to make the down payment.
If you already found a perfect house but still haven’t sold your old home, don’t fall into despair. There are ways to make it work.
Your real estate broker can help you with the financial aspects, too. They can talk to a lender and potentially negotiate more favorable conditions. Another good option to consider is a bridge loan or even a contingent offer. However, the second one only works if the market is favoring buyers. In other words, when the supply is high and the demand low.
The best scenario is to sell as quickly as possible. That way, you’ll avoid paying two mortgages. However, have in mind that you’ll potentially have to sell your home for a lower price. On the other hand, if you wait and put your home on the market, you’ll have higher chances to generate more profit.
…sell first
If you aren’t comfortable or financially able to pay for two mortgages, selling your current home before buying a new one is a safer route. This way, you’ll be sure to have equity to make a down payment, the chances of getting pre-approved for a loan will improve, and your debt-to-income ratio will be reduced.
There are plenty of things that are outside your control when it comes to selling your house. However, there are things you can do to improve your chances.
First, make sure to stage your home. This involves decluttering, cleaning, and making sure to check if anything needs to be repaired. Also, it’s essential to find a great real estate broker (add link to (https://katiasamson.com/en/contact/) who will help you set the right price and be your ally during the process.
Most importantly, make sure to plan for the period between selling your home and buying a new one. This involves setting some money aside for expenses as well as finding a place to live. If the buyer is not rushing to move in, a good option is to rent back from them. Basically, to continue living in your old home until you buy a new one and pay rent to the new owner.
The bottom line
To sell and buy a house at the same time will not be easy and stress-free, but it’s doable. By hiring experts to help, planning, and arming yourself with patience, you can stay ahead of the process and be in a much better position.
Katia Samson Real Estate Group has all the tools and contacts to make this process smooth and worry free. Contact us today to plan your next real estate move
In collaboration with Matthew Schwimmer