Can I Buy & Sell
At The Same Time?
Buying or selling a house can be a monumental task.
Doing both at the same time takes the complexity to a whole new level.
If you’re buying and selling a house at the same time, you’ll need to navigate a hot seller’s market as both the seller and buyer. You’ll benefit from a seller’s market on the one hand but could also face challenges as a buyer. With fewer homes for sale, than there are buyers, there is greater urgency and competition in the market. However, there are signs the housing market is beginning to cool down. There’s no way to make the process of buying or selling a home totally predictable, but thinking through your preferred strategy will help you navigate the ups and downs a little bit more easily. While you can’t control the market, you can plan ahead to minimize the impact of any potential challenges that may arise.
Address Some of the Questions that Could Arise
When BUYING AND SELLING Your Home
at the Same Time
1. Preparation for buying and selling -- start getting ready for both as soon as you can!
"The more you plan, the more it will save you from making big mistakes"
Selling
A good listing agent can guide how to prepare your home for the market. That will include making any necessary repairs to remove red flags for buyers, as well as decluttering and cleaning. Almost every house is too cluttered from the point of view of selling because selling a home is an entirely different activity from living in it. After cleaning and decluttering, get photographs and videos of the home completed so those materials are set to go when you're ready to list the property.
Buying
Number one is to make sure your finances are in order. A lot of people say, 'Oh, I know, I have great credit. I know I can get approved,' But lending guidelines are changing every day. To get an offer accepted in today's hot housing market, you'll either need to have the cash to buy it outright or be fully preapproved for a mortgage to finance the home, without any conditions from a lender that your existing home must sell first. The pre-approval process for all borrowers should really start before they jump in and begin house hunting.
2. Make the money work! 
When selling your home, you likely will use the proceeds to pay off the mortgage and then apply any remaining money toward the next property. But until that sale closes, you'll need to come up with the money for a down payment and have financing set up to buy the next home. Some homeowners tap into savings accounts for the down payment on the next house. But not everyone has a hefty enough balance to make that work. Here are some other options.
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Home equity line of credit
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Bridge loan
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401(k) or other investment account loan
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Low-down-payment mortgage
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A new way to buy and sell - a variety of newer companies, such as Homeward, Knock, Opendoor, Orchard, Ribbon, and others are remaking the way homes are bought and sold. Their services vary, but generally, they provide financing so you can make a cash offer on your next home before closing the sale on your existing home — and avoid paying for two mortgages at once.
For example, with Homeward, you get approved for a mortgage and work with the company to make a cash offer on a new home. You can use your own lender or the company's lending affiliate, Homeward Mortgage. If your offer is accepted, you move into the home after the purchase closes and list and sell your old home. While you're waiting for your old home to sell, you rent your new home from Homeward for up to six months. If your old home doesn't sell in six months, Homeward says it will buy it from you. Once your former home is sold, you close on the new home.
These companies comprise a sliver of the real estate market today and operate only in certain markets. So you'll need to check whether their services are available in your area, see if you and your property qualify, and then compare the costs versus going the traditional route.
3. Get the right timing!
Determining the best time to sell a house isn’t a science – it’s an art. That’s because there are so many things to consider when it comes to timing a sale appropriately, from the real estate market in your neighborhood to your emotional investment in your home. You can’t just take one factor in isolation. It’s important to explore all the different facets of selling a home to ensure you’re making the right choice for your unique needs. Once your financing is in place, a real estate agent can help you time the sale and purchase. One way is to negotiate the closing dates to work best for you.
If you want to schedule a free orientation to Buy & Sell at the same time, with no obligation, fill out the form here.