How To Buy And Sell A House At The Same Time

Selling your old home and buying a new one at the same time is a balancing act. There is no right or wrong method when it comes to how to buy and sell a house at the same time. Your options vary depending on what you can afford and how much risk you’re willing to take on.

So here are some tips if you’re stuck in this kind of situation.

Buy a Home First

Buying a new home before you sell your old one is, honestly, the trickier of the two methods. If you can afford to own both homes at the same time, and a lender will qualify you, you might want to go ahead and find the home that you want to buy first.

Holding two properties at the same time will undoubtedly be a stretch financially. However, if you can afford to do so, it’s also the safest option. This option allows you to submit offers on new homes without having to worry about using a home sale contingency or taking out a new loan.

Rent Your Home Back After It Sells

An agreement to occupy after closing is exactly what it sounds like. This provision allows you to rent your home back from the buyer-now-owner from the time of closing until you’re ready to move. Keep in mind, however, that in this scenario, you’re essentially asking your buyer for a favor. They don’t have to agree to rent the home back to you.

Not everyone is going to agree to this, obviously, but it’s an option worth asking about. This gives you time to buy and move into another home. On the plus side, you wouldn’t have any contingencies on your new home purchase because it’s already sold.

Time Everything to Avoid Contingencies

The easiest way to avoid the hassle of moving twice is to use the settlement date to your advantage. If possible, try to have the settlement date on your new home fall on the same day as the closing on your old one. That way, you can move directly from one home to the other without pausing in between.

Here, it’s important to remember that writing up an offer is a negotiation. If having matching settlement dates is important to you, you may want to be flexible with other areas of the contract as a gesture of good faith to the other parties involved.

Selling First and Buying Second

Selling your old home before you buy a new one is a more financially secure option. This way, you’ll know exactly how much money you have to spend on a new property. However, this method is not without its inconveniences, as well. For instance, you may have to deal with the stress of moving twice within a short period of time.

If all else fails, you can always find a short-term rental to hold you over until it’s time to move into your new home. The biggest issue, here, is the cost. Short-term rentals are often more expensive than their year-long counterparts. Additionally, you may have to invest in some storage options to hold your excess belongings until it’s time to move.

Buy With a Contingency to Sell

For many people, this is the ideal scenario. You put in an offer on a new home, and closing is contingent on finding a buyer for your current home. If you can’t find a buyer in time, you have the option to try to extend the contract or to back out of the deal. With this contingency to sell, you only have to move once, and you don’t have to worry about carrying two mortgages.

Some sellers are willing to wait, but it depends on the seller and on market conditions. Understandably, sellers don’t like them because they offer little-to-no reassurance that the buyer will actually be able to purchase the home. You are, of course, free to include this clause in any offers you make, but be aware that it could negatively impact the strength of your offer.

Bottom Line

Buying and selling a home at the same time is never easy, but it’s not impossible. Be prepare to take with you your best negotiating powers in order to pull this one off. Most especially, seeking professional help will be the best advice we can give you.

If you have any questions about buying or selling a home, connect with us today! Call our local realtor, Cody Tuma, at 541-306-3139 to know more about the in and out of real estate.