What to Know When Buying and Selling a Home at the Same Time
Buying and selling a home simultaneously requires planning, financial preparation, and expert coordination. No matter the reason, managing both transactions at once can be stressful. We’ve prepared some ways to help streamline the experience as you navigate the buying and selling process. Here’s what to know when buying and selling a home at the same time.
Understand the market conditions
Your first step should be to research the local real estate market. Working with a real estate agent who understands the local market trends will help you create a timeline. They will be able to give market insights like inventory rates, average sales price, and more.
Get pre-approved
If you’re planning to purchase your new home with a mortgage, it is wise to get pre-approved before you begin your search. Getting pre-approved will give you a clear understanding of how much home you can afford. It will also indicate whether you qualify for a new loan while still holding your current mortgage. You can also explore financing options, such as bridge loans or Home Equity Lines of Credit (HELOCs).
Declutter and stage your home early
When you’re buying and selling, many factors are out of your control. It can be helpful to do what you can to control the timeline. Preparing your house to go to market early could even reduce the amount of time your home is on the market. Cleaning, decluttering, staging, and minor repairs can result in a fast home sale. This could even help you get a head start on packing!
Create a contingency
With the guidance of your Realtor, you can plan to include contingencies in the contracts can help protect you from financial strain. Two common contingencies to include are a home sale contingency, which will allow you to buy a new home only if your current home sells, and a home purchase contingency, which means your home sale is contingent upon finding a new home. Putting these contingencies in your contract will give you some breathing room and make the process less stressful.
Strategically time the transactions
It’s ideal for both closing days to be around the same time to avoid the stress of juggling two mortgages. By working with your real estate agent and lender, you can accomplish this in a few ways. Closing on your sale first can reduce financial risk, but you may need to arrange for temporary housing. If you can financially manage two mortgages or you’re paying cash, buying first ensures you find a home on your own timeline without feeling rushed. With precise coordination, you can even sell and buy on the same day!
Work with the right real estate agent
An experienced and knowledgeable agent can help you time the market, price your home correctly, and negotiate in your favor for both transactions. When you work with a Calcagni Realtor, you know you’re backed by an agent who is knowledgeable and equipped to assist your purchase and your sale. If you’re ready to tackle the challenge of buying a new home and selling your current one, contact us.
