Your simple guide to buying and selling a home simultaneously.
“How do I buy and sell a home at the same time?” I’ve been receiving this question a lot recently, and I understand why. The process can be overwhelming, so I’ll guide you through exactly what you need to do to pull off simultaneous closings.
The first thing you should do is speak with a lender. We need to know what your options are, but to do that, you’ll need the full financial picture. For example, can you purchase a home without selling your current one? Does your lender offer bridge loans, or will you have to make your offer contingent on the sale of your current property?
Once you have your financials sorted out, your options come down to four main contingencies:
1. Make your offer contingent on the sale of your current home before listing.
2. Put your home on the market and use a contingent offer.
3. List your home, set a closing date, and look for a new property.
4. Buy a new home first and try to close on the same day of your future sale.
“Flexibility is crucial when buying and selling at the same time.”
The first option is the riskiest, and the fourth is the best; unfortunately, not everyone has the financial situation to buy first. If you have to choose one of the other contingencies, it is crucial that you can put your home on the market within a moment’s notice. You need to be flexible to make this work, as a quick sale is essential.
One option is to ask your new buyer for a rent-back agreement. In this situation, you’ll rent your property back from the buyers for 30 or 60 days. This will give you time to find and close on a new home.
If all else fails, you might have to temporarily rent somewhere while you search for a new home. This situation isn’t ideal, but sometimes it’s necessary. Plus, it can be very manageable if you prepare correctly.
No matter what your situation is, you need to work with a great agent to help you navigate all the moving pieces. Call or email me if you have any questions. I look forward to hearing from you!
