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5 Tips on Buying and Selling a Home at the Same Time

As the housing market picks up, many people are thinking of selling their current home to buy another one at the same time.

With the rise in home prices over the last few years many people are thinking of selling their current home to buy another one at the same time. Some of these homeowners may have outgrown their home and want to trade up and buy a larger home, while others want to downsize and purchase a smaller home. Homeowners in this situation are often unsure what’s involved in buying and selling a home at the same time. They may be concerned they won’t be able to sell one home and move right into a new one within the same time period.

Most of the time homeowners need to sell their home in order to qualify to buy a new home. This makes homeowners who want to sell hesitate to take a first step because they don’t want to end up homeless. . They worry they won’t have anywhere to live for an extended period of time. Although buying a home first before selling their existing home is one option, most homeowners are unable to carry two mortgages at the same time while they wait for their home to sell.

Below are some tips on how to sell your home and buy a new one without ending up owning two homes or having no home to live in.

5 Tips on Buying and Selling a Home at the Same Time

  1. Negotiate a longer period until the closing date when you obtain a buyer for your home. Instead of the typical 45 day closing try to negotiate 60 or even 90 days so you have time to find the home you want.
  2. Sell your home to a buyer and request that they allow you to rent it back from them for a month or two until you find a home.
  3. Consider temporarily living with family or even try a short term rental. We know this is not opportune for many but it is actually the least stressful way to buy because you have your money in hand which makes it easier to buy. There is also less stress in doing one thing at a time: selling then buying.
  4. Another option is to disclose in your listing that your selling is “subject to seller finding suitable housing” to alert buyers that you have to find a home to move to. Keep in mind this is not a preferred option because it may turn buyers away.
  5. Or if you don’t disclose the above contingency publicly in your listing on MLS, you can still try to negotiate it into your offer and purchase and sales agreement.

→ Bonus Tip:

Work with an experienced agent. Since two sales are involved it is imperative that the process is managed properly. This is why the transactions need to be handled by experienced agents who have a full understanding of all parts of each sale.