Today I’ll share how I helped several of my friends buy and sell a home at once with ease.
There’s no right or wrong method to buying and selling a house at the same time, but one of the first things you’ll want to consider when selling your home is whether it’s a buyer’s or seller’s market.
Juggling these two transactions at the same time is difficult in just about any market, but when it’s a buyer’s market, putting a contingency on your offer may cause the seller to decline it. Be sure to check out my post about the five contingencies in real estate if you haven’t seen it.
If you can afford to own both homes at the same time, a lender will qualify you, and it’s a good idea to find the home that you want to buy first. Apart from showing that you can qualify to own two homes at once, you’ll also need the money for a down payment and the closing costs.
Once your new home purchase is completed, you can now move in, put your previous home on the market, or rent it out—whichever works best for your financial situation.
If you qualify to buy while you’re still in your current home, you can ask your potential buyers for a rent-back contingency that allows you to stay 30 to 60 days after the closing. This is an option worth asking about, as it gives you time to buy and move into another home with the added benefit of not putting any contingencies on your purchase offer. The drawback to renting back your home is that you’re on a deadline and if your purchase doesn’t go through, you still have to move.
We’ve helped six families buy and sell at the same time in the last two months. Don’t hesitate to reach out to us for guidance in the process or if you have any questions. We’d love to help you.