Guest Writer: David Allen
Going through the process of buying a new home is one of the most stressful experiences you can have. Yet, most people will relocate multiple times during their life. You could end up buying and selling multiple properties until you find one where you plan to settle down. This is a normal process, which begins with purchasing your first home. Buying a starter home is a wonderful thing, but you only get to do that once. For each subsequent relocation, you will probably have to sell your old home first. Today, we will take a look at how to buy and sell a house at the same time.
Why buying and selling at the same time is good
Obviously, not everyone will have the exact same experience, but as it turns out, many people end up buying and selling at the same time. Here is why:
Most people move around a lot; buying and selling homes at the same time is a common occurrence.
Buying and selling is more common than you think
Like we mentioned in our opening paragraph, people tend to move – a lot. The average American is going to move 11.7 times during their life. Of course, many of those US citizens have different motives for relocation, but considering what kind of a hassle you need to go through - you can be sure that no one is doing it for fun. Be that as it may, it’s reassuring to know that you aren’t the only person who is trying to figure out how to buy and sell a house at the same time.
Have a good agent
Going through two sales in a short period is a lot to handle. The number one piece of advice we can give is: hire a professional agent to represent you. You’ll need to have someone on your side who knows how to negotiate and close the deal. When trying to juggle two sales, you’ll need to be quick to act and seize the opportunity as soon as it presents itself.
If you have a good agent, you will be able to negotiate better and close deals faster.
Timing is key
Time is not going to be on your side. The sellers, who you are buying the home from, will expect you to move forward. If you don’t, they will find someone else. As much as you prepare, you might not be able to buy the house you wanted in time if you don’t sell your old one first. However, don’t despair; there are always new properties popping up on the market. You can try to postpone the buying date and get as much time as possible to close the sale of your old home. Have your entire paperwork ready so that you can reduce the time between the two sales.
It’s important to remember that you simply can’t stretch yourself too thin. If you have an FHA or VA loan, you will not be eligible for a second mortgage. It’s advisable to avoid bridge loans and carrying mortgages for two houses. Finding the proper type of loan for you can be challenging, so you should check out what you are eligible for. Financially, it makes sense to wait until you close on your old home before committing to anything else. Whichever way you look at it, you’ll need to do your best to time the two sales perfectly.
Planning and organization
Scheduling two sales and negotiating both at the same time requires a lot of planning. There will be a lot to do, so you might need to give up on perfectionism. Make a list of tasks and handle them one by one. Just be happy that things are done, and cross them off your list. Hesitating for too long can cause you to lose out on good deals, and that’s something you can’t afford.
Place a contingent offer
When people ask how to buy and sell a house at the same time, we usually recommend placing a contingent offer. This is a great option when purchasing a home is dependent on you selling your previous home. You simply attach a contingency to your offer that you need to sell your own home first. The seller will know you are being upfront and can plan accordingly. They will also inform you when they get another offer and give you a deadline to respond. Real estate jargon can sometimes get confusing, but we try to cover user questions and explain how things work. If you have any other questions regarding real estate, you can check out the AskJasonGelios show to see if we have already answered them.
When trying to buy and sell a house at the same time, you might be part of a complex daisy chain.
Expect complex sales chains
When trying to buy and sell a house at the same time, it is a common occurrence to find a buyer who is also trying to sell first. While they might be trying to do the same thing as you, try to avoid overly complex sales chains. The more parties there are in the chain, the more likely it is to fall apart. It can be enough for one person in the chain to run into complications with their sale to cause trouble for others down the line.
There is obviously going to be a lot to keep track of, but figuring out how to buy and sell a house at the same time actually isn’t too hard. If you’ve got a good agent and know what you want, the process is pretty straightforward. Even though things may get complicated at times, everyone involved wants to make the sales happen.
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Jason Gelios is a Husband and Father. After that, a Top Producing REALTOR®, Author of the book Think like a REALTOR®, Creator of The AskJasonGelios Real Estate Show and an Expert Media Contributor.