Buying a new home at the same time as you’re selling your old home is all about timing and some luck, of course. And while you can’t control everything that happens during the complicated buying and selling process, there are some things you can do to set yourself up for smooth closings — maybe even on the same day! Consider this key information on how to buy and sell a house at the same time.
Given all the steps and paperwork involved in buying and selling at the same time, you’ll want experienced professionals guiding you through the process. Hiring a skilled real estate agent can give you a realistic estimate of home prices in your area and how to price your current home. Using that figure, you can calculate how much equity you have and what your net proceeds will look like so you can apply that money toward the down payment and closing costs of your new home. Working with a really experienced Realtor makes a huge difference. Using the same real estate agent and real estate attorney (if required in your state) for both the sale and the new purchase can make the entire process go more smoothly. Most people only interview one real estate agent and hire them. You can interview multiple agents before you sign a listing agreement to sell your house. If you are choosing to pay an agent to sell your home, you are spending a significant amount of your equity to facilitate the transaction. By understanding the cost of selling a house, sellers are more equipped to reduce any sale or closing costs associated with their home sale.
Selling first makes getting a mortgage easier, but it also means you’ll need to find a temporary place to live. Buying first means moving will be easier, but it also skews your debt-to-income ratio, making it harder to qualify for a new mortgage—not to mention the difficulty of juggling two monthly house payments.
Secure Financing Ahead of Time
You can often get preapproved for a mortgage before you even start looking for another house. A preapproval sweetens your offer, showing the seller you are serious and are likely to secure financing. It also speeds up the process so you aren’t waiting on a lender to approve you once you’ve made an offer. Non traditional lenders values your existing property during their approval process and uses their cash to buy your new home before you sell your old one. That means you can make an all-cash offer, eliminating the need for appraisal, financing or home sale contingencies. It closes faster and reduces costs. All you pay is a 1.9% fee that can be rolled into the purchase of the new home. You can buy your next home and take your time selling your old one if needed. It may not always be as cheap as selling and buying a house at the same time, but it removes the hassle and stress out of the transaction so you can relax. Your all-cash offer may also help you get a discount from the seller or win your dream home.