Selling your current home and buying a new one at the same time can feel like a high-stakes juggling act. There are showings to schedule, offers to negotiate, and financing to figure out—all while trying to time everything just right. But with the right strategy, it’s possible to smoothly transition from one home to the next.
Whether you’re upsizing, downsizing, or moving to a new neighborhood, this guide will help you navigate the process and set yourself up for success.
Step 1: Decide Whether to Sell or Buy First
One of the biggest decisions you’ll face is whether to sell your current home before buying a new one—or vice versa. Each option has pros and cons.
Selling First: Selling first gives you a clear picture of your budget for the next home. You won’t have to worry about carrying two mortgages at once, but you may need to find temporary housing if you can’t immediately close on your new home.
Buying First: Buying first ensures you’ll have a new home secured before selling your current one. However, you’ll need to qualify for two mortgages simultaneously or explore financing options like bridge loans.
Consider your financial situation, the current housing market, and your risk tolerance when deciding which approach works best for you.
Step 2: Know Your Financial Options
Financing is one of the trickiest parts of buying and selling simultaneously. These are some options to help you bridge the gap:
Bridge Loans: A bridge loan is a short-term loan that allows you to use the equity in your current home as a down payment for your new one. It’s a convenient option, but keep in mind that interest rates may be higher than traditional mortgages.
Contingent Offers: A contingent offer allows you to make an offer on a new home that depends on the sale of your current one. While this can protect you financially, it may make your offer less competitive in a hot market.
Temporary Housing: Selling your home first and moving into temporary housing, like a rental or a housemate arrangement, can give you the time and flexibility you need to find the perfect new home without feeling rushed.
Consult with a lender like Keller Home Loans to explore which option fits your financial situation.
Step 3: Tap Into Your Home Equity
If you’ve built equity in your current home, it can be a powerful tool for funding your next purchase. Most homeowners use the proceeds from their home sale as the down payment for their next property.
Work with your lender to determine how much equity you can expect to access, and plan for additional costs like closing fees, moving expenses, and repairs.
Step 4: Remember Timing Is Everything
Timing is critical when managing two transactions at once. Here are some strategies to help you stay on track:
Coordinate Closing Dates: Ideally, the closing date on your current home will align with the closing date on your new home. Work closely with your real estate agent and lender to negotiate dates that minimize gaps or overlaps.
Plan for Delays: Even with the best planning, unexpected delays can happen. Build flexibility into your timeline and budget for contingencies like temporary housing or extended storage costs.
Negotiate a Rent-Back Agreement: If you sell your current home before buying, consider negotiating a rent-back agreement. This allows you to stay in your home for a short period after closing, giving you extra time to close on your new property.
Step 5: Prepare Your Current Home for Sale
Selling your current home quickly and at a strong price is key to making your transition smoother. Here’s how to get it market-ready:
Declutter and Stage: A clean, clutter-free home appeals to more buyers. Consider professional staging to highlight your home’s best features.
Make Necessary Repairs: Fix minor issues, like leaky faucets or chipped paint, to make your home more appealing to buyers.
Set the Right Price: Work with your real estate agent to price your home competitively based on market conditions. Overpricing can lead to a longer time on the market, which might throw off your timeline.
Step 6: Stay Organized and Communicate
With two transactions happening simultaneously, organization is essential. Keep all documents related to both sales—like contracts, loan approvals, and inspection reports—in one place.
Regular communication with your real estate agent, lender, and any other professionals involved will help ensure everyone is on the same page.
Step 7: Work With Experienced Professionals
Successfully buying and selling at the same time requires expert guidance. A knowledgeable real estate agent and lender, like those at Keller Home Loans, can help you navigate the process, explore financing options, and coordinate closing dates. Their expertise can make all the difference in keeping things stress-free.
While buying your next home and selling your current one simultaneously can feel overwhelming, careful planning and the right team of professionals make it manageable. From timing your transactions to leveraging home equity and securing financing, each step you take brings you closer to your goal.
With these tips in mind, you’ll be well-prepared to tackle this exciting transition and step into your new home with confidence.
