- Meet with your Agent Early On
Buying and selling a home simultaneously can be a bit of a juggling act. If you want to be able to pull it off effectively, the sooner you can meet with an agent to put together a concise game plan, the better. If you are buying and selling in the same geographic area, you will likely want to use the same real estate agent. However, if you are buying and selling in two distant areas, you will likely need to work and coordinate with two separate agents.
- Know your Numbers
The timing of financing and financing options with a sale and purchase can be tricky, being able to connect with a professional seller early can help to give you guidance. Knowing what you will likely get out of your current home when you sell and knowing what you can afford with the new home you will purchase will help you to have a clearer game plan.
- Consider Renting your Current Home
If you are in a rush to move into your new home, considering the option of renting out your current home could be a good choice. It will free you of having to feel stressed about selling your current home quick. However, if time is on your side and you are ready to get rid of your current home, don’t waste time considering this option. Most renters will want a 1 year rental agreement to move into your home, so this is more of a long-term play, not a short one.
- Start Looking for Temporary Housing and Storage Options
Many times when buying and selling simultaneously, you will need to have housing and storage options ready. Homes can sell quick and if you don’t have a new place picked out, you will want a decent place to crash and store your stuff in the mean time. Don’t put yourself in a position where you are in a very uncomfortable situation because you didn’t see this possibility happening sooner.
- Know your Leverage Points in Certain Markets
If you are buying in a competitive market, adding a contingency that your current home must sell before you buy could cost you the deal.
If you are selling in a competitive market, you may be able to negotiate your with the buyer to have a longer escrow or even a rent back that would allow you to stay at your current house longer while you find your new place.
If you are buying in a slow market you will likely have a ton of negotiating leverage with the seller. It should be much easier for your to work out a clause to allow you to sell your current home before you close on the purchase of your new property.
If you are selling in a slow market it will be tough to negotiate a ton with the buyer. Being able to have a temporary living situation worked out will be your best bet.
Selling in a slow market and buying in a competitive market can be the toughest scenario. If you need the proceeds from your current home to go to your new purchase, this can put you in a desperate situation. You will likely want to consider selling your house and moving into temporary housing until you purchase your new place.
Selling in a competitive market and buying in a slow market is the best.