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Buying and Selling a Home at the Same Time

Buying  And Selling Home At The Same Time Small

Each real estate transaction comes with its own challenges, but buying and selling a home at the same time compounds these challenges. The addition of time constraints and another set of buyers and sellers increases the need for appropriate expectations, patience, and perseverance. Proper planning and preparation are key to a successful conclusion for both transactions.

Planning ahead for your back-to-back sale and purchase

You’ve heard people say, “The destination is not as important as the journey.” However, in the case of buying and selling a home at the same time, in many ways the opposite is true. It is important for you to keep the end goal in mind while at the same time detaching a bit from the process. There will no doubt be bumps in the road; the less you focus on those, the better.

Building a great team will help you put together a successful plan for your sale and purchase. What follows is a list of the professionals you’ll be working with. Communicate with them early and often to keep your process moving forward toward the finish line.

Working with your real estate agent

Your real estate agent can help you develop a clear idea of your needs and expectations for the process. Everything will be time-sensitive, but if you are under severe time pressure, it is important to be very clear about your timeline.

If your purchase will be in another market, allow your agent to refer you to a qualified agent in this new market. Their coordination and cooperation will be vital to the smooth running of the process.

Right-pricing your current home

Of course you will want to sell your current home for the highest possible price as quickly as possible. That means you’ll need to right-price your home rather than holding out for the highest price your market will allow. Unlike other situations, you may not have the luxury of waiting for a buyer who will give you top dollar for your home. Talk to your real estate agent about a price that is fair but also encourages buyer interest and enthusiasm.

Searching for your new home

You’ll want to keep your timeline in mind when searching for your new home. That may mean that you’ll need to put more time into your home search or be a bit more flexible in your requirements. If you are looking to sell and then buy your dream home, you may want to put in place a longer process with a stop-over in a short-term rental property to buy you some extra time.

Working with your lender

You’ll need to spend time talking with your lender about the way your financing will work during the time that you are freeing up money from the sale of your current home to buy your new home. Depending on your financial situation, you may need to close on your current home before initiating financing on your next home or you may be able to qualify for both mortgages simultaneously.

There are loan products available that can help you tap into the equity on your current home in order to purchase your new home, and then pay the temporary or bridge loan off when you close. While this may make