Buying and Selling a Home at the Same Time!Return to Blog
Buying a new house while selling your old home is the best path to take for some home sellers turned home purchasers. Ideally, this change would happen in one day. However, in reality, it isn't so straightforward, and you'll have to expect some time between selling your home and purchasing your new one or the other way around. The procedure is a difficult dance full of complex steps and a rhythm that is hard to do flawlessly. All in all, you might be wondering, would I be able to purchase another house before I sell mine? The response to that is, yes, you can! Yet the bigger question is whether you will want to once you understand the entire process.
Pros and Cons of Selling Before Buying
Pros - The Benefits of Selling Before Buying:
- You won't need to risk paying for two home loans simultaneously.
- The money will be effectively available for an initial installment for your new property.
- You will have a better understanding of the value that can be placed in your new home.
- You may not meet all requirements to convey two home loans, so this alternative can be perfect for those with not exactly excellent credit.
- You won't have the pressure to decrease your asking price to sell your home swiftly.
- You will have the option to relinquish one home before assuming on the liability of another home, which can make things feel properly ordered.
Cons - The Negative Aspects of Selling Before Buying:
-Finding an impermanent place to live before settling in another home can be unsettling.
-You will presumably need to manage to move on two separate occasions, which can be tiresome.
-You may feel pressure to locate another home in a rush.
-Paying for storage and extra moving expenses for two moves can add up over time.
-Your investment will temporarily be out of the real estate market.
Pros and Cons of Buying Before Selling
Pros: The Benefits of Buying Before Selling
- The process of house-hunting can be progressively loose and enjoyable.
- You just move one time, so you won't face costly storage charges or multiplied moving costs.
- You are more averse to have regrets from swiftly purchasing a house in a rush.
- You'll have a spot to go immediately before you even let go of your present home.
- You have a backup plan in case something goes wrong during the process of purchasing the new home. That way, if the deal falls through, you still have your old home to stay in.
Cons: The Negative Aspects of Buying Before Selling
- In the event that your money is tied up in the interest in your present home, you might not have a lot of opportunities to make a greater down payment or high offer for the new home.
- You may be pressured to accept a lower offer on your home if you wish to sell quickly.
- You may wind up paying for two properties without a moment's delay until you sell your home.
- You will likewise be liable for two arrangements of charges.
- If you decide to rent out your current home until it sells, you may confront numerous difficulties that accompany being a landlord. They might be increasingly complex given the way that you are attempting to show and sell the home with an occupant.
- You may not meet all requirements for another home loan when you have your current one.
The Steps of Selling First
When you are trying to navigate how to buy a house contingent on selling yours, you may decide that selling first makes the most sense for your special circumstances. If so, take these steps to sell first:
- To sell your house before buying a new one, first, contact a real estate agent about listing your home for sale. Then, once you have a concrete offer from a hopeful buyer, it's okay to start looking for your new home. That can help the process go smoothly and not leave too much time between selling and buying.
- Decide on where you'll live before you find a new home. Life happens, and some sellers find that they can't find the right home for them for weeks or months. It sometimes takes even longer than they. Be sure that you will have a steady, secure place to live from the moment you sell your home until you are moving into your new one.
- Fulfill all your obligations as a seller, once you know that you will have a secure place to stay until you find your dream home.
The Steps of Buying First
Sometimes buying first is just the best way to go. If you want to know how to buy a house before selling your current house, follow these steps:
- Start house hunting right away. Be proactive since you do still want to get the ball moving on selling, yet it's important to find just the right home for you.
- Make an offer on your dream home and request an extended closing. In this situation, you can request an extended closing if you feel that you are close to selling your home. That will give you time to better coordinate the sale of your old home while you purchase the new one. Please note that this only applies to a situation when you are close to selling your old home while buying the new one. If you decide not to list the home for sale until you have a new one, the next step would be to contact the real estate agent to list your home for sale.
- If you have savings, you may use that to purchase the home. Alternately, consider purchasing the house with a home equity line of credit. That can allow you to borrow against the equity in your current house until it sells. That way, your available cash isn't tied up in the old home.
- Close on the new home.
- Consider renting your old home until it sells. That can prevent you from paying excessive costs.
Conclusion and Further Reading
The intricate procedures of both purchasing another home and selling your old home can majorly affect your financial health for many years to come. Gauge the upsides and downsides, at that point survey your conditions. If you struggle with making this decision on your own, speak to your attorney, financial adviser, or Darryl Glass, your realtor for life.
You can contact Darryl by phone at (510) 500-7531, by e-mail at email@example.com, or schedule a call for a later date on his calendar below: