Buying and Selling Houses Simultaneously: Practical Tips
Learn how to successfully purchase and sell a house at the same time. Get practical tips on negotiating, timing, loan-qualifying, and more when buying and selling homes simultaneously.
Buying and Selling Houses Simultaneously: Practical Tips
Buying and selling a house at the same time can be a stressful process, but it is possible if you carefully plan ahead. Follow these tips to ensure you navigate both transactions smoothly.
Plan Ahead
The key to successfully buying and selling a house at the same time is to plan as far ahead as possible. Begin by doing research on the current market for both houses. This means looking at comparable listings in the area and determining what a reasonable asking price will be. Create a timeline for when you will need to put in a purchase offer on your new home and when you will be ready to put your current home on the market and start showing it.
Seek Professional Advice
Aside from the research you do, it's important to seek the advice of professionals when you're buying and selling a house at the same time. A real estate agent can help you with both transactions by providing information about the current market and giving you advice about when to make offers and put homes on the market. Make sure to also get legal and tax advice about each transaction.
Get a Bridge Loan
A bridge loan can help you finance both transactions at the same time and ensure funds are available when needed. Bridge loans are temporary loans designed to help you purchase another property before selling your existing one. This type of loan will require you to have good credit and it can come with high interest rates, so it's important to weigh the potential costs and benefits before committing to one.
Find a Flexible Buyer
When you're selling your house at the same time as you're looking to buy, it's important to find a buyer that is flexible on the closing date. This is especially true if you're purchasing a home that hasn't been built yet. You'll need to make sure the house selling process is complete before the construction on your new house takes place, so make sure the buyer is aware of that timeline and is amenable to a flexible closing date.
Choose the Right Title Company
Finally, you'll want to make sure you choose a title company that is familiar with the closing process for both of these transactions. The closing process for buying a home is different from selling one, and you'll need to make sure the title company knows what documents to prepare and when they need to be provided. They should also have a good understanding of the laws in your area that relate to both transactions.