Buying & selling your home at the same time is a massive undertaking. It requires serious time and energy along with prior planning and forethought. Thankfully, it can be done with the right approach, expertise, and mindset. This article will help you get ready for the road that lies ahead by offering several key insights that will help you prepare for buying & selling your home at the same time.
Decide if you’ll buy or sell first
Even though you’ll attempt to handle both transactions at the same time, you’ll have to determine which task to prioritize as you begin the process. Some people will choose to sell their current home before they start shopping for a new home. They believe they will feel more comfortable shopping for a new residence once they have the proceeds in hand from their previous home. The greatest challenge to this approach is coming up with an alternate plan for where you’ll live if you’re not able to immediately move into a new home after you sell your previous property.
One option is to negotiate a rent-back agreement with the seller where you’re able to live in your current home for up to 60 days after closing. You’ll probably need to incentivize the buyer with a lower sale price or some other concession to entice them to include this clause in the deal. You can also look into other short-term rental properties, or you can stay in a hotel if you’re only needing a place to stay for a few nights.
Others will choose to buy a new home before they sell their current home. This ensures that there are no gaps in their permanent living situation. They are able to take their time with moving because they aren’t worried about being out of their current home by a certain time. This can be a larger financial burden, and you’ll want to speak to a lender as soon as possible if this is your preferred option. They will review your financial situation to gain a better understanding of how long you could carry multiple mortgage payments before it becomes a significant financial liability for you. As with any other home purchase, they will provide you with a pre-approval letter that gives you clarity about what type and amount of loan you could qualify for.
Make sure you have enough cash for the down payment
Some people will rely on the proceeds from their existing property to fund their purchase of a new home. If you would rather buy first, there are a few options to consider that will make this an easier pursuit for you. Some buyers will use a bridge loan that provides them with the necessary funding to buy a new home before their current home sells. These are short-term loans that often come with higher interest rates. They also sometimes require collateral.
Another possibility is to ask the seller to pay your share of the closing costs. The buyer’s share of closing costs normally amounts to two to five percent of the total price of the home. You can ask the seller to pay your share of the closing costs in exchange for a higher sales price or some other incentive. You may pay more in your mortgage payment each month, but you won’t need to put forth as much cash to complete the purchase.
Prepare for both transactions
Once you take care of your funding and decide if you’ll buy or sell first, it’s time to get ready for both transactions.
Preparing to sell
If you want to sell quickly, it’s important that you take your marketing and staging efforts seriously. This will ensure that you’re able to cast a wider net and grab attention from as many prospective buyers as possible. Some people will hire a professional home stager to help them prepare for in-person showings, while others will follow their own home staging plan. Don’t forget to set aside time to talk with your real estate agent about the best possible asking price for your home.
Preparing to buy
If you haven’t already talked to a lender about getting a pre-approval letter, you’ll want to do this before you begin looking at specific homes. Many sellers will only do business with buyers who have pre-approval, so this is an important step in the process. You can also begin looking online at homes in your price range to get a better idea of what you’re shopping for. Communicate about your wishes and preferences with your real estate agent so that they can recommend new homes as they come onto the market that might fit the profile of what you’re looking for.
Choose a real estate agent who you can trust
In a perfect world, you could work with the same agent on both transactions. Since the agent understands the unique position that you’re in, they can provide specific insights and tips that will help you streamline the process and have an easier time completing both deals. They can accurately answer any questions that you have because they fully understand both transactions you’re working on. Entrusting the same agent with both deals will save you a tremendous amount of time, energy, and stress as you work on handling two home deals simultaneously.
The Hoffmann Team is used to handling multiple transactions at the same time, and they would feel honored if you entrusted them with your upcoming sale or purchase. They understand the unique complexities that come with buying & selling your home at the same time, and they are ready to stand by your side and partner with you through the entire process. Reach out to their office if you have additional questions about handling multiple home transactions at the same time or if you’re ready to take the next step towards buying or selling a home. They will be glad to assist you.
Recommended reading: How to Find a Real Estate Agent
