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You’ve gone through the home buying process before, but now you’re ready to sell and buy a new home. The thought of buying or selling a home on its own can probably send you in a spiral, much less trying to do both at once. We are here to make the process simple for you. If you want to sell your Dallas home in exchange for a Houston home for sale, follow these steps to keep the process as easy as possible.
To Buy or To Sell First – That Is The Question
There are two options when buying and selling at the same time: buying before you sell and selling before you buy. Here is a breakdown of the pros and cons for both:
Buying Before You Sell
When buying and selling a home simultaneously, the first option is to buy your new home before you sell. This ensures that you will have a place to go to when your current home is officially sold. Specially if you live in an area like Sunnyvale, CA, where houses are easily sold. Having a new place when you sell your old one will give you the peace of mind of not having to get a temporary rental or a last-minute couch hopping situation. You’ll be able to pick up all your things and move just once.
On the other side of the coin, buying a new home before selling could trap you with two mortgages at once. When buying before selling, make sure you have a plan for quickly selling the home or a plan for financing the two mortgages. We would recommend looking into market reports before making your decision, so you can get some insight on how difficult it could be to sell your home.
Selling Before You Buy
When selling your current home before you buy your next one, you have the advantage of not having two mortgages. In addition, you’ll have the money from your previous house to add to your budget for your next one. If you know where you can stay after closing on the house, you will have plenty of time to search for your new dream home.
However, if you don’t have a temporary housing plan between closing on your old home and putting in an offer on your new one, you can be in for a sticky situation. This can rush the home-buying process and cause your home purchase to be more expensive or not as ideal as you want it to be.
Steps to Buying and Selling at the Same Time
While there are pros and cons of buying and selling a home simultaneously, there are some tips that can help you prepare. Continue reading to find some of the most important steps to take when selling and buying a home at the same time.
Connect With a Local Real Estate Agent
This first step will make the rest of them a hundred times easier. Buying or selling a home in itself without a real estate agent is a tough job, much less trying to do both on your own at once. Real estate agents not only have access to the most in-depth market reports and up-to-date listing information, but they also have loads of experience in guiding home buyers and sellers through the process.
Be sure to know the right questions to ask before hiring a real estate agent. A great real estate agent will make sure your checklist for selling and buying your home is laid out in detail. For an already daunting process, a real estate agent will help to make the journey as seamless as possible for you.
Get a Gauge on the Current Market
Unless you are moving into a house next door, there will likely be some differences between the market you’re currently in and the one you’re moving to. In order to decide if buying and selling is a good option, you’ll need to assess the selling market in your current area and check on the buying market in your desired one. The easiest way to accomplish this is through your real estate agent, but if you aren’t using one, spend some time researching your market and reaching out to real estate professionals to get an idea of what you’re working with.
Decide Whether or Not This is the Best Time to Make a Move
Once you’ve seen that the market is in a good enough place, you’ll want to make sure that circumstantially you are personally in the best place to sell and move. Check your finances, create a budget, and look ahead to see if you should expect any bumps in the road.
In addition, keep in mind that different seasons are better than others when it comes to buying and selling your home. Summer and Spring are the most popular when kids are out of school, and the weather is nice for moving day. Once again, check with your real estate agent for insight on whether this is the best time to move or not.
Prep Your Home to Sell
You don’t truly know how much stuff is in your house until you need to sell it. Even if you aren’t planning on listing your home for another few months, begin making preparations now! Declutter any unnecessary knick-knacks and go through old paperwork that you haven’t needed in decades. This process is exceptionally important if you are downsizing.
Aside from sorting through your belongings, look around in each room and determine if anything needs to be repainted, repaired, or updated. Your real estate agent can help you figure out what upgrades can be made to increase your home’s value but start thinking about this early. Repairs can be costly, so it’s wise to spread them out over a few months rather than rushing to get them all done at once.
List Your Home
Similar to most of this list, this step is definitely easier with a real estate agent. Agents know the best places with the most exposure to list your home. If they are an agent that works with buyers AND sellers (which you should look out for if you are buying while selling), they will also have connections to buyers that may be looking for a home exactly like yours.
Not only will your real estate agent have the best places to list, but they will also know the most efficient way to advertise your listing. They’ll be able to add the details of your home in a way that stands out to potential buyers, and they will list it for a fair and competitive market price.
This can go one of two ways when buying and selling at the same time. You could find a new home before yours sells, or yours could sell before you find your new home. Prepare for both, and attempt to find temporary housing if you need it or find a short-term tenant for your current home while you wait for it to sell.
Secure a Down Payment
While you should begin financing for your new home several months before you intend to buy, make sure you are settled with a down payment when it comes time to put in offers. This preemptive financing will put you in the best situation to get the loan you need to make the purchase. Unless you already have enough to buy a home before you sell your current home, or you make sure your house is sold before you buy, chances are likely that you’ll need a loan to complete the deal.
Know your options and consult your real estate agent or mortgage lender to figure out what your best choice is in terms of a loan.
Begin Browsing for Your New Home
Now it’s time for the fun part! With the help of your agent, start looking through listings to try and find your new dream home. An involved real estate agent will know your needs and desires and should have some great properties in mind, to begin with. According to NAR, majority of homebuyers prefer living in the suburbs like Ardmore, PA to have more space. This is due to the effect of remote work on the home search process. So if you’re someone who works from home, be sure to let your real estate agent know your preference.
If you’re moving to a new area, have your agent look into things like schools, neighborhood demographics, dog parks, and other amenities that are necessary for your next place. If the area is within a reasonable driving distance, go for an intentional drive through the neighborhood and check it out for yourself.
When selling a home at the same time, don’t get so lost in looking at listings that you forget to tend to the current home you’re trying to sell. Your agent will help you stay on track for both, but it’s always good to keep both processes in mind at once, especially if you are in a time crunch.
How To Buy and Sell a Home at the Same Time
Whether you’re buying a home for sale in Los Angeles, CA, or in Chicago, IL real estate market, make sure to know the common contingencies included in the purchase agreement. Hopefully, this article has helped you to feel more prepared when buying and selling your home at the same time. The first step in this entire process is to get in touch with a real estate agent, and they will help with the rest. Share this with someone you know if you found this helpful, and let us know in the comments what your top tips are for buying and selling a home at the same time!
