Selling and Buying a Home at the Same Time
Some daring thrill seekers may take on both tasks simultaneously. If you need to sell and buy a home simultaneously, here are some tips to help you navigate the challenging course.
Evaluate Your Local Market
For most buyers and sellers, selling one’s current home before putting an offer on another property is their best real estate option. But for others, it depends on the local real estate market. If you’re considering selling and buying simultaneously, could you research the market in your target area?
Before selling, consider making a list of the type of home you are interested in and research the current market. If inventory is low, you may need to wait until the market picks up again.
The general rule of thumb is to sell first in a buyer’s market and buy first in a seller’s market, but this is only the case occasionally since every experience is unique. You can understand what might work best for you by talking to your trusted real estate agent – s/he will know the market and be able to provide insight on current trends.
Understand Your Finances
When buying or selling a house, finances are a huge part of both transactions. Whether you’re looking to sell or looking to buy, knowing your current financial situation is vital to your next steps.
Do you have a mortgage loan?
You will want to know how much equity you have in your home. The equity that has built up could be enough for a down payment on another home. It’s important to remember that any equity is only accessible after closing. Furthermore, your equity can be transferred at the closing of your current property to your new property with a concurrent close.
Be ready for repair expenses.
Don’t be afraid to have an inspection done to understand what repairs or work may need to be done to the property, as this will help you know how much you may need to deduct from the possible sale price or any concessions you may need to make for a future buyer.
Utilize a Contingency
Contingencies can have different meanings throughout North America. Ideally, you would sell your home on the same day as buying a new one. This is the case for most buyers/sellers. Adding a contingency to the contract can be very helpful.
If you want to sell and buy concurrently, you can make an offer with a settlement contingency. This contingency works when you have an offer on your home and want to buy another, which means you’ll buy the home contingent on selling your existing home.
In some situations, you may have a great offer for your home, but you haven’t found your new home of choice, and you haven’t made an offer; in this case, you can sign a rent-back, which means you go through with the sale of your home, but you rent the house back from the new owners for a specific time that is agreed upon, giving you time to find a new home or make other living arrangements.
Buying and Selling are Significant Events
Would you like some help figuring out where to start, or if you should do both simultaneously? Your local real estate agent can provide insight into the market and what other buyers and sellers have encountered. Ensure your finances are up-to-date and have a good idea of what you can get for your home. If you must search for another home while selling, have a backup plan if you can’t find another house in time.
Real estate across North America is still as popular as ever. Have a target area in mind for a new home? If you are considering selling and buying a home in the Magic Valley of Southern Idaho, please get in touch with us with your real estate questions.