How to Juggle Buying and Selling a House at the Same Time

buying and selling a house

Are you buying and selling your home at the same time?

When it comes to buying and selling, there’s no denying the stress that comes with moving. In fact, selling a house is considered to be one of the most stressful events in one’s lifetime. This is especially the case when the individual is both attempting to sell and purchase a home at the same time.

However, there are steps people can take to make this process more smooth as well as minimize risk.

If you’re currently finding yourself in this situation, you’re going to want to ensure that you read this. We’re uncovering simple tips for how to juggle buying and selling a house at the same time.

Determine The Current Market

When it comes to buying and selling, the first step is to gain an understanding of the current market. Even more specifically, you’ll want to know exactly what’s going on in your immediate neighborhood as well as the neighborhood that you want to purchase.

Of course, this is all something that a qualified realtor will be able to guide you through. They will determine whether the current market is a “buyers” market or a “sellers” market.

Once you make this determination, you will then be able to strategize your buying and selling plan. In a buyer’s market, the seller may take an offer that is contingent on the sale of their home. However, in a seller’s market, this is not likely to happen.

If it’s a seller’s market, consider that your home is likely to sell quickly. That being said, also consider that you will soon be buyers and that purchasing a home may be faced with maximum competition.

You’ll also want to consider the time of year when it comes to your sale. Some months are slower than others. For example, in Florida real estate, January and February tend to see a lull in the market.

Prepare Home for Quick Sale

In this situation, it is vital to sell your home fast.

That being said, there are a number of things that you can do to aid in the quick sale of your home. To name a few:

  • Hire an appraiser to get an exact reading of your home value
  • Price your home fairy and not above market value
  • Declutter -rent a storage unit for excess belongings
  • Pre-plan a short-term housing strategy
  • Make minor repairs

You may also want to consider moving your possessions into storage and staging your home. Not only does staging help to increase the value, it also speeds up the selling process.

In fact, a staged home spends 73 percent less time on the market than a non-staged home.

Selling Your Home Beforehand

Selling your home prior to buying is likely the least stressful option. When the home sells, you will know the exact amount of money that will net from the sale.

This can help to give you a better understanding as to what you can afford. It also helps to ensure that you are not carrying two mortgages.

Another benefit to selling prior to buying has to do with seller’s confidence. The fact is, sellers need to have confidence in the buyers who purchase their home. Without this confidence, sellers may fear that the prospective buyers may run into issues.

The ultimate fear is the buyer will not be able to close on the property.

Even simply putting your house on the market when you begin your search transitions your status to a serious buyer. Without this change, you may be considered high-risk buyers.

Purchasing a Home Before Selling

If you can afford to own two homes at the same time, buying a new home prior to a sale surely has its benefits. First, speak with your lender and financial advisors to understand if you can temporarily hold two mortgages.

Not all lenders will approve for borrowers to carry two mortgages. More often than not, a lender will need to see that you are able to make six months of payments for each home.

Consider that you will also need the money for a downpayment and closing costs. Most buyers use the profits from their sale to cover these costs. However, in buying before selling, this is not possible.

While buying before selling has its financial setbacks, doing so helps to avoid a race against the clock. This gives buyers more time to find the perfect home and minimize their chances of settling for something less.

Consider a Short-Term Rental

Buying and selling at the same time is always going to be a high-stress situation. That being said, be sure to plan ahead for this potential difficulty. This is especially the case if it’s a seller’s market and finding a home may be challenging.

If you plan to sell your home prior to buying a new home, you’ll want to have a short-term rental in place. In most cases, these are furnished rentals while the contents of your home are currently in storage.

While this is a costly expense, it gives buyers more time to find the perfect home and to avoid settling. Some people may even move back into their family home for this duration of time.

Buying and Selling a House

When you’re a first time home buyer, you have the privilege of purchasing a home for the very first time. But, when you’re a repeat buyer, the reality of searching for a home is challenged by the fact that you are currently carrying a mortgage.

There’s no denying that buying and selling your home at the same time has its challenges.

But, there are tips and the tricks of the trade that can help to simplify this stressful time. These tips range from understanding the current market in your area to planning ahead in case your home remains on the market.

At the end of the day, it’s most important that you are aware of and planning ahead for the risks that you may face.

For more articles on real estate and tips for buying and selling a house, be sure to visit our blog!

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