Buying and selling a home at the same time can seem a bit intimidating, even to those who’ve bought and sold a property before. However, by understanding the basics and following a few steps, the process can be much more straightforward than you think!

Here, we examine how to buy and sell at the same time in this complete guide, detailing several strategies and pointers that may help you along the way. Read on!

Buying before selling: Pros and cons

First, let’s take a look at the advantages and disadvantages of buying before selling. Buying a new property before selling your current one gives you more flexibility in terms of timeline, as you won’t have to worry about finding a temporary space for your belongings as you wait for your home to sell. In addition, you can enjoy a much simpler and faster moving process since you’ll be able to access both properties at once. In essence, this eliminates the need for temporary storage and living arrangements. Overall, you can sell and move in at your own pace.

With that said, buying a home before selling your current one comes with its own set of cons. Having two mortgages can be financially risky and challenging. In addition, many buyers may have difficulty qualifying for a second home, and coming up with a down payment can be more complex. You will have a higher debt-to-income ratio and won’t have any funds from selling your home beforehand.

Selling before buying: Pros and cons

Now, on the flip side, let’s take a closer look at some of the benefits and drawbacks of selling before buying. First of all, your new home loan approval will be much easier. In addition, you can avoid having two mortgages, and you can access your home equity to buy a new home. Thus, you will have a better financial safety net going forward and likely feel more confident financially in your decisions.

As for the cons of this strategy, temporary housing and storage are required. The process will often require multiple moves, and you may feel rushed or pressured to buy a new home.

Steps to buy and sell at the same time

Buying and selling a home at the same time is a multi-step, complex process. However, by following these expert steps, you’ll be able to buy and sell a home simultaneously without a hitch.

1. Find the right real estate agent

The first step, of course, is to find a trusted real estate agent who is ready to guide you through the process of buying and selling at the same time. Experience, market knowledge, and a keen understanding of current housing market trends are all key factors to weigh when selecting an agent to work with. You want to find a true professional with vast experience in the local market and plenty of testimonials acknowledging their exceptional service.

2. Study your finances closely

Next, take a close look at your financial situation to come up with a budget and financial plan. It’s vital to figure out the little details, including how much down payment you can afford, the cash you have on hand, and whether you could afford to take on two mortgages at once. Financial readiness is absolutely crucial before actually starting the buying or selling process.

3. Understand the current housing market trends

Then, take a close look at the current housing market and determine whether it’s best to buy or sell first. Consulting with your real estate agent is typically the best way to do this, as they are highly in tune with local market trends and can predict where the market may be heading in the coming months. In addition to consulting your agent, conducting additional research online is a great idea, too. The more information you have, the better!

4. Prepare your home for sale and do preliminary home research

Once you’ve found an expert agent to team up with, examined your finances, and researched the current housing market, it’s time to prepare your current home for success on the market and conduct preliminary research into homes for sale in neighborhoods you’re interested in. This way, you’ll be better prepared to move ahead with the buying and selling process more seamlessly and efficiently.

5. Line up your down payment and arrange financing

The next step is to line up your down payment funding and contact a financial institution to arrange home financing. You will need to receive pre-approval for your mortgage loan so that you can focus on finding properties that fit your financial needs. Some options that work well in a buy-and-sell scenario include home equity loans, home equity lines of credit, and bridge loans. Consult various lenders to receive quotes and select the loan that works best for you.

6. Get your home on the market and start looking for homes

Coordinate with your real estate agent to determine a competitive and realistic asking price for your current property. Setting an accurate price is essential, as it garners attention from buyers and can help your home sell more quickly. Taking professional photographs of your home can also help it sell faster. Around this time, you can begin actively looking for homes and putting in offers as well.

7. Negotiate the terms and close

Finally, negotiate with buyers and sellers in whichever way best fits your moving timeline.

Your agent will be by your side to assist you with negotiations in both transactions. They will help you make savvy decisions when responding to offers from buyers and negotiating the contract terms with sellers.

Once you’ve successfully sold your home to your buyer and had an offer accepted on a home you’re interested in, your real estate agent will help you coordinate the closing process to ensure that all the paperwork is signed in a timely manner.

Buy and sell at the same time

If you’re hoping to buy, sell, or both, reach out to trusted agent Judy Julien today for the experience and knowledge you need to ensure the process goes smoothly. Judy is ready to guide you through your real estate journey, with exceptional customer attention and a goal-oriented approach. Get started today!