Buying and selling a home at the same time can be complicated, and it comes with tricky timing challenges. Unless you have enough cash, raising the money for a down payment may be hard while your equity is still connected to your current home. Moreover, if you sell your home before buying, you may have nowhere to go after the sale closes.
However, with proper planning, strategic pricing, and the right financing, you can time a sale and a new purchase in a way that works for you. Here are some valuable tips on how to buy and sell a home at the same time.
1. Determine the resale value of your current home
Knowing how much your home will fairly sell for in the current market is part of researching your equity. Consider pre-inspection to know how much work is required in your home before selling and the adjustments you will need to make to a buyer to make up for those repairs.
You can use an online valuation tool, hire an appraiser, or check comparable homes in your area to determine your home’s value. An online valuation tool is easy and fast, but you might need to use a Philadelphia realtor or appraiser for more accurate results.
2. Prepare your home for showings
Getting your home ready for showings is a crucial step and should never be overlooked. Take time to declutter and dispose of anything you don’t want to move with, even if you are weeks or months from listing your home. Move around your house and fix up any cracks or holes. If your bedrooms or living space are painted bright, consider repainting with a neutral color.
Making sure everything sparkles, including hardwood floors, kitchen cabinets, crystal-clear windows, and bathrooms. Depending on the time of the year, ensure your home temperature is comfortable. You want the potential buyer to get instant relief once they enter your home
3. Figure out whether it’s the right time to make a move
Some seasons are better for buying or selling a home than others. For instance, the late spring and summer are the best time for families who don’t want to relocate during the school season. On the other hand, winter might not be a better time to move, especially if you live in an area with heavy snowfall.
However, you should always be prepared to buy or sell your home, even if it isn’t the best time to put it on the market. The earlier you prepare, the easier buying or selling your home will be.
4. Partner with a local real estate agent
Buying and selling a home at the same time can be arduous, so it’s always essential to work with a professional. An experienced real estate agent can help you determine your home’s value and take you through strategy, timing, and negotiation. In addition, they can help you find the best listing price, one that will allow you to sell on your desired timeline and for sufficient money to help you make the next step. When you are selling your home, they can help you find temporary housing while your next home is being prepared.
- Figure out your finances
Getting your head around your finances is essential when buying and selling a home at the same time. This means determining how much you can afford to spend on your next home and how much equity you have in your current one. Remember that the equity in your current home will be unavailable until you close the sale, so ensure you have cash reserves to cover the down payment on the new house.
Alternatively, you can use a bridge loan, a short-term financing that helps close the gap between buying and selling a home. You can also utilize your paycheck if you earn a considerable income and have low monthly debts.
5. Consider a contingency clause
Consider including a sale contingency if you have two or more mortgage payments stretching your budget too thin. A contingent offer includes a condition you will only buy when your current home sells. The contingency states that you won’t lose your deposit if it doesn’t sell. Although being a contingent buyer is not the best, you can usually make it work with good negotiation skills.
Buying and selling a home at the same time can be stressful, but it doesn’t have to be a nightmare. With these tips and the help of a local real estate agent, you can at least be sure that things run a bit more smoothly. A top real estate agent will help you evaluate your situation and offer honest and personally tailored advice that addresses your particular needs and challenges.
Author Bio: Owen Ward has been in the real estate business for 15 years. He sees himself as a matchmaker, always looking for the perfect match (property) for his clients. He also spends some time sharing tips online regarding buying and selling homes through blogs and guest posts. One of his hobbies is making furniture.