Buying and Selling at the Same Time

Posted by Alex Narodny on Friday, January 29th, 2021 at 10:05am

By, Lisa Roberts

Searching for your dream home can be a laborious endeavor. It requires careful and detailed planning, as well as trying to fit the house tours within your tight schedule. However, this venture will probably not be the only one to which you will need to devote your time and money. Unless you are still living in your parents’ home, it’s probable that you already own a house, and you do not have the intention nor the luxury to keep two homes in your ownership. As opposed to the concerns you might have when purchasing your home for the first time, buying and selling a house at the same time could feel like an exhausting and impossible aim. Nevertheless, it doesn’t necessarily have to be this way. If you invest your time in planning and analyzing this process in detail, you could be able to prevent the majority of unforeseen incidents, and hopefully, simultaneously close on two houses.

Evaluate your finances

One of the most frequent incidents that you need to consider in advance is the possibility of buying your new home while your old house is still on the market. This outcome would mean that you might need to be able to finance two mortgages simultaneously during an unforeseeable amount of time. Therefore, it might be better to either evaluate your savings or prepare for a bank loan that could enable you to fund this mishap.

If your detailed analysis leads you to conclude that you are on a tight budget and getting a bank loan might ultimately be a risky decision you are not willing to take, your best option could be buying with a contingency to sell. Including this option in your contract could enable you to purchase your dream house at the very moment you sell your old home. This clause could potentially protect you as a buyer in case you don’t sell your house promptly. However, the fees and the expenses you funded before closing on the home will not be refunded, despite the termination of the contract. 

The time-consuming process of buying and selling a house at the same time frequently induces people to plan their budget carefully only regarding their potential purchase. People occasionally tend to forget about the unexpected costs of selling their own home, which could vary from simple and inexpensive repairs to challenging and costly renovations. To avoid possible sudden expenses, make sure that you start the preparation for this process on time, organizing your finances accordingly so that none of the potential mishaps could compromise your initial idea of purchasing and selling a house simultaneously.

Hiring a reliable real estate agent could turn the entire process into a more manageable one; therefore, you might want to consider this idea as a potential money-saver within your financial plan rather than a cost. A professional can help you devise a proper negotiation strategy, and hiring an agent from a buyer’s market will even ensure your access to some usually unavailable listings.

Arrange your home for selling

If you have meticulously organized your finances, making your house look presentable at all times has probably already made it to the top of your list. Staging your home before you list it and investing in some curb appeal upgrades can help you attract buyers quickly.

Preparing your home for house tours and keeping it impeccable at all times might appear as a handful, especially if your daily schedule entails both a full-time job and taking care of your family. However, there still are some simple yet, practical ideas that you could incorporate into your staging plan. 

Investing in the right color scheme and repainting your home will not only make your house look more appealing to potential buyers but will increase your home value as well. Whereas organizing a redecoration of your house might indeed imply a certain amount of expense, there still are ways to redesign your home without a substantial investment. You can always focus on making your home seem as less personal as possible by removing some of your belongings, decluttering, or rearranging the furniture to expand the space. Put effort into making your rooms look more inviting by removing dark curtains and letting the natural light bring your home to its full potential!

Think about the alternatives

A complex process such as buying and selling a house at the same time is subject to a variety of complicated delays. Given that it involves several people (you, the buyer, and the seller), you should always keep in mind the possibility that some unexpected occurrences might cause a delay. Although it is not inconceivable to close on the purchase and the sale simultaneously, more often than not, one of the two processes happens before the other one is finished.

If you have carefully arranged and discussed your finances, you might have already prepared for the option of having to buy your new home before selling the old one. Even though this occurrence can be risky, proper planning might not cause any significant obstacle in your initial plan. However, selling your home without successfully closing on your new house might bring about some unforeseen trouble. Even if it might appear a less stressful occurrence than the other way around, selling your home first can be troublesome, especially if you need to move far away and leave your home state. This circumstance will inevitably lead to a situation where you will have to move twice. In case your new residence is in a different state, you might need to move your belongings while still waiting for the purchase to be finished. Apart from investing your money in renting a place, you might want to consider storing your furniture until the issue is resolved.

A decision that could potentially save you the trouble of moving twice is the agreement between you and the buyer of your old home. Your contract could contain a clause regarding the exact closing date that could correspond to the date scheduled for the closing of your new house, assuming that you have already settled on your dream house. However, if the conditions of buying and selling a house at the same time are not as ideal as you intended them to be, and you are still engrossed in the process of searching for your perfect home, do not be discouraged! Focus on the factors you have been able to predict and try not to rush. Your potential purchase should provide you with a relaxing and serene atmosphere that is supposed to last for a long time, so being patient is the most beneficial thing you can do for yourself while searching for your new home. 

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