4 Ways to Conquer Buying & Selling Your Home at the Same Time

4 Ways to Conquer Buying & Selling Your Home at the Same Time

  • Ivonne Payes
  • 04/4/23

Property transactions involve many challenges, whether buying or selling a home. The art of purchasing one property while letting go of another is not as simple as “sell today, buy tomorrow.” Rather, it is quite complex. You’ll need to go through various steps to prepare your sale, such as ensuring that it’s ready for showings and repairs have been made. You’ll also be touring multiple homes that meet your list of needs and wants, negotiating offers, and more.

Financial considerations will have to be made, whether securing the funding to purchase or ensuring your current home is sold for top dollar. Let’s not forget that real estate deals take time, whether you are buying or selling. The more complex a transaction, the longer it takes to close. When you’re attempting to do both simultaneously, the hurdles can be high, but the reward is also significant. After all, it will be immensely satisfying when you’ve finally sold your property and acquired your new dream home.

The most important thing you can do when buying and selling a home at the same time is to plan and prepare effectively. You can take several paths to achieve your goals, so read on to learn more about the process and four ways you can conquer it.

Purchasing a home before selling

One way you can achieve the goal of buying and selling simultaneously is to purchase your new home first. Doing this allows you to find your dream home, act on it without worry, and remove the fear of “where will I go?” when your current house sells. This means only packing and unpacking once and reducing additional storage costs.

The ability to purchase a home before the previous one has been sold is not without a financial burden, though. If there are delays in selling your current home, this could mean two mortgages, and even if that is financially feasible, it’s certainly not something you want to maintain. If you can’t support two mortgages, consider the other option of selling before you purchase a new home.

Selling a home before purchasing

Achieving your goals this way allows you more financial freedom. Lenders will likely view your situation as more attractive if you're financing the loan because you won’t have the burden of two mortgages. If you’re purchasing in cash, this will solidify your offer and guarantee you have a stronger foundation, thanks to the proceeds of your sale.

The problem lies in competitive markets where you can sell your home and close quickly but must find temporary housing. The costs of short-term or temporary housing can add up quickly. In addition, you’ll need to factor in other expenses for moving and storage.

Tips for success

Many people buy and sell simultaneously, though the odds of aligning both timelines exactly are low. Take the following steps to streamline the process and minimize the closing time between transactions.

1. Ensure your finances are in order

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One of the most crucial parts of dual real estate transactions is your financial health. Since both transactions will rarely happen on the same day or even within days to weeks of one another, being prepared is critical to avoid heavy financial burdens. One way to do this is to determine how much house you can afford or want to purchase. Consider where the money will come from, such as securing a loan or paying cash from selling your previous home. If it comes down to having two mortgages, how long can you comfortably make both payments?

Being prepared and having financial flexibility will go a long way in helping with surprises that might pop up. Always know what you can and cannot afford to make an informed decision.

2. Ensure your current home is ready to sell

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Having your home ready to sell is crucial whether you’re simultaneously purchasing or not, and the sooner you get started, the easier it will become. As one of the most straightforward aspects of the process, it’s also quite labor-intensive. You want your home to be in the best condition for potential buyers and streamline the journey of packing and preparing to move, and this process helps with both of those things.

If your home is in good shape, you still need to clean, declutter, and stage the house. However, if you have an older home or require many repairs, it might take more time to get the property show-ready. While no one expects significant renovations, doing more extensive updates can make an impression on potential buyers and earn you more money in the end. Don’t forget to boost curb appeal and maximize outdoor spaces to draw buyers in as soon as they arrive.

3. Know what you’re looking for in a new home

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There is no easier way to manage dual real estate transactions than knowing exactly what you want in your next home. Many people have the benefit of time when purchasing a home, so they fuss over the minor details of one or two houses. When you’re on a tighter timeline, however, it’s best to maximize your time by clearly knowing what you want.

Remember, this isn’t just about the number of bedrooms and bathrooms. Dig deeper and figure out your desired square footage, layout, storage preferences, whether or not you need a bonus room or office, luxury details you must have, backyard size, and garage space. Consider your must-have items and those you can live without or can potentially add later. Although finding a home that fulfills every item is rare, you want to give your agent as much information as possible so they can find your dream home.

4. Prepare yourself for delays

When dealing with simultaneous real estate transactions, it’s essential to keep in mind that delays are inevitable. Though it may seem like buying and selling are similar, they are mirrored processes, so the timelines and requirements of each transaction are quite different. Working with a trusted real estate team, including an agent, appraiser, inspector, insurance company, lender, and title company, will prove beneficial. That way, you’ll have professionals on your side to keep you on track at every point.

If you’re ready to begin your journey of buying and selling a home at the same time, contact Ivonne Payes of Payes Homes for the guidance you can count on.

*Header photo courtesy of Shutterstock

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