Buying a New Home While Selling Yours? Here’s How to Make It Work

The first house you buy cannot be where you live forever. When it comes time to move it, you have to face the possibility of acting both as a home seller and a homebuyer. How do you avoid financial and logical aspects of these two different roles?

Sell ​​first, then buy

Before going to the market as a buyer, you can choose to take off your old house.

Professionals

With the sale of your home behind you, you know how much budget you can make for the purchase of your new house. In addition, you do not have to worry about the possible burden of taking two hostages.

Shortcoming

On the negative side, selling your house without buying your new house can leave you in a situation where you need to find a place to live. You may need to pay for storage and temporary housing, which means that there may be up to one year time for an apartment or home lease, while you find your new house.

With that possibility, you may feel pressure to put in a proposal.

Buy first, then sell

What can you buy before selling?

Professionals

Buying first gives you more time to search your new home. You can also go out of your old house before listing it for sale, making it easier to show.

Shortcoming

Buying first comes with more financial ideas. You can take two hostage for an indefinite time. You may need more cash on hand or financing to help you through the period between the purchase of your new home and the sale of the old.

Offer a casual

You can make a proposal on a new home contingent on the sale of your old property. You can strengthen your proposal by offering flexible terms and obtaining a solid pre-resulting letter on a new mortgage loan.

Professionals

Creating a proposal on the sale of your old house limits your financial risk. You will not be on the hook for two hostages. It can also give you more time to shut down sales on your property.

Shortcoming

The sellers may not be eager to accept a proposal with a casual section that combines their home sales to the closing of another deal. They may proceed to other proposals, especially in a seller’s market.

Prepare your home market first

Take out time to prepare your property market before you list your home or place it on a proposal at a new house. Clean and organize. Improve the curb appeal. You can also schedule a pre-cell home inspection to guess any repair that can make your home more attractive to buyers.

Use the same agent to buy and sell

Using the same real estate agent to buy and sell can make the process easier. You have a point of contact that will manage both transactions, potentially save you money on commission costs.

Keep in mind that you may not have this option. If you are making a long distance move, say outside the state.

Shut off time

In the ideal scenario, both you and your agent will be able to coordinate houses, old and new, for the same day or a few days to conclude dates. That small window will be busy, but you can eliminate the need to pay for other living arrangements or storage.

Consider renting your old house

If you are experiencing a market that favor buyers, then you may find it difficult to sell your old house. Renting that property can be a short -term, or even long -term solution.

risk

If you decide to rent your old house, you have to manage two properties. This may require payment of two mortgages. Fare payments can cover your mortgage payment at your old home, but you will need to find a reliable tenant.

By renting a house, you have to act as a landlord, or you have to appoint a property manager. Either in the case, you will be responsible for insurance and maintenance at the house you rent.

Bottom line

Buying and selling can be stressful, but further planning and working with your real estate agent and lender can ensure a smooth process.