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If you’ve decided to take advantage of the current market and sell your home, you may be wondering what comes next.
Do you sell your current home or buy a new one first? Can you do both at the same time? Fortunately, you can.
The decision to buy and sell a house at the same time can be a nearly seamless transition if done right.
This means your finances are in order, you’ve done your research, and you’ve connected with the right professionals.
We’ll show you how to make a plan to successfully time your moves.
Should You Buy First or Sell First?
To buy and sell a house at the same time can take a level of coordination that some people don’t believe they have the time, finances, or resources to accomplish.
The good news is, it may be more within your reach than you think.
First, let’s explore how it looks to do one step at a time: buying a new home first before selling, or selling your current home before you buy a new one.
Buying a New Home Before Selling
Your first moving option is to buy a new home before you sell your old one.
The following are the biggest benefits and drawbacks to consider before you choose this option.
Purchasing your new home before selling your current one provides the peace of mind that you have a place to stay until you’re finished moving.
If you don’t have a family member or friend to stay with and help you bridge the gap, you’ll have to find a short-term rental. This may not be an option for many people, including those with children or pets.
It can especially be difficult if you have a lot of items to move, which would mean finding storage space and needing to move your items multiple times.
Buying a new home first also is the ideal option for those moving for a new job that has a specific start date.
On the other hand, buying a new home first can be a significant financial strain.
You’ll need to consider how to navigate the following costs:
- Current mortgage payment
- New mortgage payment
- Down payment
- Closing costs
- Moving expenses
- Maintenance or repairs on both homes
If these costs seem like too much weight on your pocketbook, let’s take a look at your second option: selling your home first.
Selling Your Old Home Before Buying a New One
Choosing to sell your home before buying a new one could be a more financially secure option, but it also could leave you without a home for a period of time.
Let’s look at the benefits and drawbacks of this option.
More often than not, a homeowner will decide to sell their current home before purchasing a new one.
This option provides the funds for a new home without the added strain of two mortgages and maintaining two houses.
If you have secured a place to stay while you finish your home search, you can take your time finding the right home.
The biggest drawback to selling your home first is having a place to stay while you’re between homes.
If you don’t have someone to stay with, and can’t find a suitable, short-term rental, you may not be able to choose this option.
Plus, you have to move your items twice — once to a storage or temporary home, and then to your new home once you purchase it.
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Steps to Buy and Sell a House at the Same Time
If buying or selling one step at a time leaves room for too much stress or financial burden, it’s possible to make the process more streamlined.
With the right coordination and preparation, you can both buy a new home and sell your old one at the same time.
Whether you’re planning to sell or buy first or at the same time, follow these steps to set the groundwork for a smooth transition.
1. Assess the Market
How easy is it to sell a home right now in your area? How difficult is it to find a home for sale in your new location of choice?
By evaluating these conditions and speaking to the right local professionals, including real estate agents and loan officers, you can get a feel for how easily you can move things along — and what to do if the odds aren’t in your favor.
2. Find the Right Professionals
Buying and selling at the same time can be a complicated, overwhelming process, so you need to have the right professionals at your side to provide guidance and advice.
You’ll need an experienced local real estate agent to help you prepare your home for the market and its listing, find the right listing price, and negotiate the closing dates that will work best for your situation.
The perfect listing price will not only help you sell the home quickly, but get the right amount you need to move forward.
You also will want to connect with a trusted mortgage loan officer that can help you quickly get pre-approved for a mortgage.
3. Have a Solid Financial Plan
Finding the right agent and lender will help you put together the perfect financial plan, because you’ll understand what you should get for selling your current home, plus the loan amount you’re qualified for next.
You’ll also need to understand the amount of equity you currently have in your home, and determine whether you need to tap into that for the next purchase.
Talk with your lender to understand what your down payment and closing costs will be, so you can properly budget.
Connect with the Loan Professionals at Homefinity
If you’re ready to buy and sell a house, contact the experienced loan officers at Homefinity today.
Our team can provide guidance on the lending process for your unique situation, help you determine how you can best prepare for this transition, and get you pre-approved.
We look forward to walking you through all the loan possibilities that can fit your lifestyle.
Some references sourced within this article have not been prepared by Fairway and are distributed for educational purposes only. The information is not guaranteed to be accurate and may not entirely represent the opinions of Fairway.
*Pre-approval is based on a preliminary review of credit information provided to Homefinity, which has not been reviewed by underwriting. If you have submitted verifying documentation, you have done so voluntarily. Final loan approval is subject to a full underwriting review of support documentation including, but not limited to, applicants’ creditworthiness, assets, income information, and a satisfactory appraisal.