Do you need to buy and sell a home at the same time? Plenty of folks find themselves in this position, so today we want to go over some strategies to make the process as smooth as possible.
There are three main ways to buy and sell at the same time. First, you can buy a new home before selling your old one. Second, you sell first, then buy. Finally, you can try the elusive simultaneous close. Each of these options has pros and cons, but before you attempt any of them, there are a few things you should do.
First, reach out to your lender and get your finances in order. If you become pre-qualified, you’ll know exactly how much home you can afford. Also, please talk to us so we can determine how much you can get for your house. Plus, if you don’t already have a great lender, we would be more than happy to recommend one to you.
Now that you have your finances figured out, which option should you choose? If you decide to buy first, you won’t need interim housing, you can shop without the pressure of selling your home, and you can move without the rush. However, you run the risk of paying two mortgages at the same time. Plus, you won’t know for sure how much equity you have until you sell your property.
“You should be pre-qualified before attempting to buy and sell simultaneously. ”
If you choose to sell first, you’ll know exactly how much equity you have before you buy, and you don’t have to worry about paying two mortgages at once. However, you will probably have to find interim housing, whether that means staying with a family member, negotiating a leaseback, or renting an apartment.
Finally, you can try to negotiate a simultaneous close. This takes plenty of flexibility and planning, but we’ve helped countless clients pull it off successfully. You’ll want inspection and repairs to be done as soon as possible so we can get the ball rolling on your home sale.
If you have questions about today’s topic, please call or email us. We’d love to help you in any way we can!