In the world of real estate, there’s nothing quite as stressful as buying and selling at the same time. You’re racing against the clock because you don’t want to pay two mortgages because you closed on a home while your house is still on the market or worry about being homeless because your house sold before you could buy a new one. It’s overwhelming indeed!
It doesn’t have to be that way though. Using top agent insights, we have 4 tips that’ll help you keep your sanity while navigating the task of buying and selling at the same time.
1. What’s first: Buying or selling?
The hardest part of tackling this situation is deciding which to do first. Should you start house hunting before the house has been listed or should you list first and then shop? It’s a tough choice because today’s market is moving so quickly on the seller’s side, but it’s so darn competitive on the buyer’s side.
There’s such a limited supply of houses on the market that buyers are submitting offers the day the listing goes live. As a seller, that’s great news because you don’t have to wait weeks (or even months) to get an offer. Some markets are so hot that houses are receiving multiple offers!
If you’re looking at this from the buyer’s perspective, you’re going to have a lot of competition to get your offer accepted. Buyers are foregoing the usual financing and inspection contingencies, they’re offering a fast closing, and some are even submitting offers above asking price or submitting offers paying cash!
2. Hire a real estate agent
If you’re having a difficult time deciding the best course of action, a realtor is an essential part of this journey. You’ll need to have an agent who is familiar with the area and can handle working with a client who is buying and selling at the same time. When you’re looking at a few prospective agents, you’ll want to ask for referrals, ask about their experience and their marketing techniques. The aim is to choose the best agent you can find, but also an agent that you feel confident will work with your best interest at heart.
3. Secure funds
Prior to putting your home on the market, you could use a home value estimator to get an idea of how much your home is worth and set your asking price according to the estimate. If you have enough equity in your home, you could definitely use that toward a down payment on your new home (or even pay cash!). However, if you need to take out a loan, you’ll want to make sure you have that pre-approval letter in hand. The pre-approval will let your agent know how much you can afford to spend and it also helps to reassure the seller that you’re serious about purchasing their home and have the funds to do so.
4. Be prepared for the in-between
In a perfect world, you’d be able to sell your house and move into the new house on the same day. That, unfortunately, isn’t always the case and you need to prepare for the in-between. You’ll want to have enough money set aside to cover bills for both properties if your house isn’t sold when you close on a new one and you need to have a place to stay in the event that your house is sold before you close on a new home.
Keep your expectations in check
Any real estate transaction is going to have you on edge and trying to buy and sell at the same is doubly stressful. It’s important that you keep your expectations in check because it may not go as smoothly as you’d like. Don’t be afraid to lean on your realtor for reassurance and advice at any point during this situation. They’re experienced professionals and can offer great insight about what’s to come and the best ways to navigate both transactions.