It’s always possible to sell and buy a house at the same time, but you need to do a little planning and a lot of preparation. Getting the timing and the details right is critical, and it will ensure the process is less stressful and less expensive.
Gain Some Market Knowledge
If you’re buying and selling in the same market, it will be easy to get a feel for how it’s performing. Take a look at the properties that have sold recently. Get an idea of how long they were on the market, what they sold for, and whether that selling price was above or below the original asking price. If you’re buying and selling in different markets, you’ve got a little extra homework to do. You’ll need to understand the real estate trends in each market. These things will factor into how competitive you are with your pricing strategy for the home you’re selling and what you’re willing to negotiate on the home that you’re buying. Work with agents that are knowledgeable about each market.
Do The Math
Figure out your numbers on both the sale of your current home and the purchase of your next home: How much can I sell my property for?
- How much equity do I have in my current home?
- What’s my budget for the new property?
- What are my options for financing?
- What kind of down payment can I make on my new home?
- What amount should I leave aside for closing costs?
,p>The most important thing you’ll need to know is whether your lender will allow you to close on a new home without first selling your current home. Talk to a broker you trust and get to know your options. You’ll need to be pre-approved for a loan before you buy.
Prepare for the Variables
Having a plan in place is absolutely necessary when you want to sell and buy a home at the same time. But, you also need to remain flexible. The unexpected may happen; whether it’s not finding a buyer for your current home, or having an appraisal come back too low, or even being unable to find a home you love in time to close on the home you’ve sold. Have a Plan B in place and just for good measure, have a Plan C in place as well. You may have to rely on things like temporary housing or flexible closing dates.
The best way to successfully sell and buy property at the same time is with a great team of partners. Work with a good real estate agent and a mortgage broker. Just having qualified, professional people in your corner will take a lot of stress out of what can seem like a completely chaotic process.