During the homebuying process, many homebuyers must sell their current home before buying a new one. However, aligning that timing can feel almost impossible. Luckily, this is a common challenge that can be successfully resolved with creativity, patience, and knowledgeable real estate agents. If you anticipate finding yourself in this situation, read on for insight into navigating buying and selling a home simultaneously and how to do it successfully.
Assess the market and plan ahead
Before you list your home and make an offer on a new house, take the time to do your homework. First, assess the housing market where you’re looking and where you live to understand how long homes are on the market, how much available inventory there is, and housing comparables similar to what you’re looking for and selling. Then, use this information to decide if you’re comfortable buying and selling.
Invest the time in preparing your home to sell
If you’re serious about selling your home quickly, invest the time to ensure it will appeal to buyers. This means significantly decluttering and removing the number of personal belongings in your home, making any necessary repairs, painting the house in a neutral color palette, improving the curb appeal, working with your real estate agent to hire a professional staging team and a professional photographer, and keeping your home clean, neutral and clutter-free when it’s on the market.
Assess your finances
Regardless of the circumstances, assessing your finances before buying and selling a property will ensure you make a wise financial decision. Consulting with your financial professionals and mortgage lender can help guide you to make a decision that aligns with your financial goals. Because it’s not a guarantee that you will sell as soon as you’re ready to buy, it’s wise to understand if you have the funds available to cover the new home’s down payment and closing costs.
Start your new home search
In low-inventory markets, your home search may take longer than you anticipate. Have specific search criteria and a firm understanding of your must-have and nice-to-have features. Ensure the offers you’re extending are competitive, considering the asking price and including any offer points that appeal to the seller’s specifications.
Be prepared for your home to sell first
If your home sells and you still haven’t found a new home, you’ll need to decide how you want to move forward. This may include turning down the offer, negotiating a rent-back agreement where you rent back from the buyers until you find a new house, or being prepared to find a rental property until you can find a new home that meets your requirements.
