Selling your old home and buying a new one at the same time can be difficult and stressful. If you buy a new home first, you run the risk of potentially paying two mortgages at once, or if you sell first, you could end up with no place to live until you find your perfect home. Doing both at the same time, however, can be done! Here are a few tips for buying and selling a home at the same time.
Find what your options are
Work with an experienced Realtor. Get everything you need to sit down with your agent and lay all your cards on the table. Your Realtor will guide you in finding out what your home is worth, what equity you have, and find a lender to see what you qualify for. These will determine if you’re able to purchase a home without selling your current home or if you have to sell your home to be qualified to purchase a new home. Because you can do either, you can buy or sell first but once you get all the cards on the table, you can at least see what your options are. A lot of sellers won’t have the ability to go buy first before they have to sell their home but for those that do it can really be a good way to approach it.
Selling a house before buying
Let’s say you qualify for both. If you need to sell first, you’ll try to get a lease back on a home for 30 to 60 days or a little longer than escrow so you can put your home under contract and hit the ground running for a new home purchase. Once you get past all the elephants In the room like inspections and appraisals on your home sale, then you are in the position to write a better offer. You stay at your property, you close on the new one and you still have days or weeks to move. Then you don’t have to make double payments on your mortgage. The only problem is you are at a negotiating disadvantage because you are writing on a contingent offer, but you are only moving once, so there’s still a lot of benefits there.
Watch out for part 2 as we discuss the pros and cons of buying before you sell.