Buying a home can be stressful enough, but buying AND selling a home at the same time? It can get complicated! But don’t stress too much—by planning ahead and preparing for each step of the way, you can sell your current home and buy the next home of your dreams successfully.
Most people need to sell their current home in order to purchase another home, and this proposes a few challenges. (If you could, most people would probably buy a new home, move into it, and then focus on selling their old home!)
Here’s what to consider:
Evaluate Your Market
If you’re going to start buying and selling a home at the same time, then first of all, you’ll want to educate yourself on what’s happening in your current real estate market. Your real estate agent will be able to provide knowledge and insight on everything from how long it might take your specific type of home to sell, to how long it might take you to win a home based your requirements.
Plan Ahead & Schedule… & Then Stay Flexible
In both your buying and selling situations, there’s a lot that’s in your control… but many of the final outcomes are not in your control. For example, you might quickly receive an offer and close on selling your home… but what if you don’t win the first (or second, or third) home you put an offer on? Or what if you successfully win a home quickly, but your current home takes awhile to sell? (There are several other scenarios, but these are a couple of the most likely!)
If you sell quickly and can’t buy right away, you may need to be prepared to rent for a short period of time. Or if you buy quickly and sell slowly, you may need to be prepared to pay 2 mortgages for a period of time.
Contingencies & Bridge Loans
If you do encounter one of these situations, there are a couple of ways to protect yourself. In your home buying process, you can make the purchase of your new home contingent on the sale of your current home. This protects you, but also may make your offer less appealing if there are multiple offers. Another protection is getting bridge loan, which helps you own 2 homes at the same time. It’s a short-term loan that is to be repaid on the sale of your home.
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