How to Buy and Sell at the Same Time
While some people enter the market as a buyer or a seller, some people enter the market playing both roles at once. So what’s the best way to juggle these transactions?
Actually, there are three ways you can handle it: You could sell first then buy, buy first then sell, or you could manage both transactions simultaneously.
But before attempting any of these three strategies, there are a couple of preliminary steps you should follow.
The first thing you must do is to review your finances. Having your agent connect you with a lending professional to get pre-qualified will give you a clear idea of what kind of home you can afford.
Next, consult with your agent regarding what you can sell for, and also about how much equity you currently have.
With these two steps taken care of, you will be ready to proceed with pursuing one of the three strategies we mentioned earlier. Now let’s take a look at how each of these would play out.
1. Buying first. Doing this allows you to get settled into your new home before tackling the selling process. It also eliminates the need for interim housing. However, this scenario may leave you temporarily paying two mortgages at once. Beyond that, you also won’t know for certain how much you’ll make from your home sale. Agents can help you estimate what your proceeds may be, but no one can be certain what you’ll earn until your sale has closed.
2. Selling first. This option affords you the benefit of knowing exactly how much you have to put towards your new home. Additionally, selling first will prevent you from paying two mortgages at once. Keep in mind, though, that this strategy will require you to find interim housing, whether that means living with a friend or family member during the process, finding a place to temporarily rent, or arranging a lease-back agreement with your buyer.
3. Buying and selling simultaneously. With proper planning and some professional guidance, this third scenario can be extremely effective. Our team has helped many people successfully navigate this strategy, and we would be happy to help you do the same.
If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.