The process of buying or selling property (not to mention high-end luxury property) in today’s market has never been more complex. It’s more important than ever to have a knowledgeable real estate agent by your side to ensure that you're managing your sale or purchase efficiently.
But if you’ve made the decision to buy and sell a home at the same time, those difficulties can quickly pile up. That’s why we’ve put together this insider’s guide. In it, you’ll find everything you need to know in order to become a true expert in the art of buying and selling a home simultaneously. Let’s dive in!
Get the timing right
If you’re determined to buy a new home and sell your existing property at overlapping times, it’s critical to set out a detailed day-to-day schedule. Planning the timing of your move is a complex task, but you can help make the process go smoother if you understand when you need to complete each step. The biggest decision to make is whether or not you want to buy first or sell first. Below, we’ll run through the advantages and drawbacks of each approach.
Buying first
Purchasing your next house before selling your existing home has several clear advantages over the alternative timeline. For one, you’ll have a definite idea of where you’re going to live once the home sells. You won’t have to pay for expensive short-term housing, nor will you need to shell out money on several distinct moves to and from rental properties. Many properties don’t allow month-by-month rental arrangements, so you’d likely need to pay for several months rent in advance anyway.
On the other hand, buying before selling will likely mean you have to pay two mortgage installments for a few months while you wait for the home sale to finalize. If your sale ends up being delayed, these expenses could quickly add up.
Selling first
If you plan your home sale before buying your next property, you can also look forward to a few advantages. Most importantly, you won’t need to pay two separate mortgages. With your home sale already closed, you and your family will have more flexibility to look for your next home on the market without having the burden of paying a second mortgage on your mind.
By the same token, selling before buying means you don’t have secure housing in the interim. You could begin to feel pressured into rushing your home sale in the interest of saving expenses on temporary rental housing. Above all, you can do your part to reduce the stress of buying and selling a home at the same time by meeting with a real estate agent early on in the process and sharing your concerns with them so you can draw up a realistic timeline.
Buying and selling simultaneously: A step-by-step guide
Now that we’ve covered the pros and cons of buying first and selling first, let’s move on to our guide for navigating you and your family’s way through the process. We’ll discuss everything you need to keep in mind. Let’s take a look!
Step 1: Research the housing markets
The odds are the location of your previous home and your next home aren’t going to be in the same housing market unless you’re moving just a few blocks down the road. That means you’re going to be moving from an area that may be better or worse for sellers into a market that’s completely different.
The best plan is to sell your current home when the market favors sellers and move into a home located in a buyer’s market. But that’s not always possible. Stay in touch with your realtor so they can contact you if and when a neighborhood in your area of choice starts to look more amenable to buyers. That may be the time to start your move.
Step 2: Be precise about your move-in/move-out date
The housing market in your current area and your chosen new home will also change in more predictable ways throughout the year. In general, the best time of year to sell a house is spring through the summer when children are out of school, and parents are available to tour properties.
The winter can be more difficult to attract buyers, but it can be a great time of year for a buyer to snatch up a house on the market with very little competition from other buyers. Speak with your realtor because every city in the country has its own traditions for buyers and sellers, and the market can differ in slight ways from one state to the other.
Step 3: Don’t skimp on home staging
As a seller, it’s more important than ever to prepare your home professionally to sell. Make sure to invest in an expert home cleaner to sanitize the property. Bring in a professional home stager and photographer to decorate the house in a way that will have the maximum impact on online buyers. Don’t forget to clean up the curb appeal so that open-house guests get a good first impression. Speak with your agent about any home repairs you can do to boost the visual appeal of the house before you start fielding offers.
Step 4: Figure out funding
As a buyer, you should do your research as soon as possible to determine how you’re going to finance a down payment on the new home. This is especially important if you plan to buy your next home before you close on the sale of the previous one. There are several financing options available to you, including a home equity line of credit (HELOC) and bridge loans. Ask your lender about other ways you can finance the period of time in which you’re paying two mortgages if it comes down to that.
Get in touch with a local real estate agent
There you have it: our complete guide to buying and selling a home at the same time. If you have any questions or comments to share, or you’d like to learn more about Corona homes, reach out today! Contact the Brimm Realty Group for more information.
