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How To Buy & Sell A Home At The Same Time

If you plan well, you can easily buy and sell a house at the same time. Here are a few pieces of advice on how to get the things going in your favor.

Preparation

•  Get the services of a team of professionals in the field of buying and selling houses. Contact your friends and relatives and ask them which REALTORS®, lawyers, appraisers, home inspectors and movers they would recommend you. Get an appointment and have a talk with them about your goals for the very beginning.

•  Maintain a regular and efficient communication with your team. For example, you could ask your REALTOR® to e-mail you updated listings in order to save time and make sure you are informed about fast selling properties.

•  Tell your REALTOR® that you want to be informed about the important issues related to your buying and selling.

•  Organize the details of buying and selling your house. It is better if you keep track of your progress by using a special notebook to record all the dates, meetings and transactions.

Selling

•  Consider selling your home a few months before buying one. If you sell first you will know for sure how much you can afford to pay for your new home. You will also not face the risk of having two homes at a time.

•  If you decide to sell first, give yourself enough time to look for a new house. You can negotiate a long close or a favorable rent-back option, so that you have a place to say until you get your new home.

•  Try to stay motivated when you sell, and list a fair and competitive price. If you know your house has problems, try to fix them or adjust the price so that it reflects the house's true condition.

•  Keep the big picture in mind. You may choose a lower unconditional offer or one which is more flexible in respect to the closing date, as it often happens when you deal with first-time house buyers who are not conditioned by selling their home first.

•  Accelerate the selling process by giving preference to offers which do not rely on financing conditions, or make sure the buyers get pre-approved within 10 days after accepting their offer.

•  Convince the buyer of your home and the seller of the new house to sign an agreement regarding a certain window of dates and agree upon financial penalties if they do not stick to their promises.

Buying

•  Before listing your home for sale, try to see what houses are on the market fitting your price range. Not too many? Perhaps you should consider putting off the selling until you buy your next home. Once you do that, a long close will give you the time you need to sell your house.

•  Don't waste precious time considering properties which are completely out of your price range. Instead, calculate your budget and contact a lender if you need a mortgage pre-approval.

•  If you encounter the perfect property, have a professional home inspector look at it and get insurance before making an offer.

•  Allow yourself the necessary time to look through all the paperwork. Make sure you make this point clear from the very start with your REALTOR® or lawyer.

Moving

•  Make your life easier by moving only the things you need and care most about. Donate all old and rarely-worn clothes, house ware and furniture. A spring cleaning is essential before moving into a new home so that you don't make needless efforts.

•  Carefully organize your move by making use of to-do lists or inventory lists which you can take from your REALTOR®, mover or the Internet. Avoid anything getting lost by coding all the packed boxes. This way you will also make it easier for the movers to carry your things to the appropriate rooms of your new home.

•  Make sure you let your utility providers, postal service and all other contacts enough time to record your new address and start dates for the services you need at your new home.

•  Keep all the recipes you get during your move, as they may be tax deductible. Ask an advisor to check if you are eligible.

To make things easier for you and your family, pack a bag with clothing, medication, bedding, work and other items which you will surely need the first day. Make sure you include a moving-in toolkit if you want to assemble furniture, etc.

Trouble-Shooting

Buying and selling a home at the same time will have some challenges. You will get very stressed if you will have to sell your home before getting a chance to buy or vice versa. However, even in this situation, there are different options.

•  If you are in a situation where you own two homes at the same time, consider bridge financing. You can use the equity in your old house; therefore you can use a bridge loan to make a down payment on your new house. This is highly recommended as a short-term solution.

•  If your situation is not too stable at the moment and you don't qualify for bridge financing, a no-ratio mortgage may be your way to go. You will have to meet a higher interest rate but you can recover later, when your financial situation improves.

•  Another solution is to get some extra funds by putting a line of credit on your old house. The interest rate will probably be lower than on a bridge loan, but you will pay a penalty fee if you decide to sell your house within a year.

•  If you need interim housing, you can choose among the many properties for short-term rental and convenient storage facilities. Or you could find a more affordable arrangement with your family or friends.

•  In case you have children, consult the school officials in your old and new neighborhoods to make a schedule for them. For example, if you are only be able to move in the middle of the semester, you could ask the new school to allow your children to go to classes before moving in.



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