Selling a home is thrilling, but it’s also a lot of work. The same can be said about buying a home.
If you’re ready to both maximize the equity in your home and reimagine your dreams of homeownership, here are five considerations that can keep up with your ambitious project of simultaneously selling and buying real estate.
Over prepare
There’s no such thing as being too prepared, especially when we’re talking about two major transactions.
Get all your ducks aligned before taking too many steps forward. The last thing you need is to stumble because of an oversight.
It’s never too early to start gathering information, taking stock of needed repairs and assessing the market from both a buyer and seller perspective.
Have a plan B
No matter how much prep work when into finding a buyer, there’s still a possibility of a deal falling through.
For those selling and buying at the same time, a breakdown to a deal can really sting. That’s why it’s vital to have a backup plan in place. Your planning should include an emergency fund, contingencies for moving and storage and rental possibilities until you get back on track.
Study financial details
Depending on your situation, you might select one loan program over another.
If you do not need the proceeds from a home sale to purchase a new property, for instance, you’re financial path forward could be smoother.
Equity and bridge loans provide alternatives for purchasing a home even though your current one has not yet closed.
Work with someone local
In today’s market, every advantage can go a long way. Working with a local real estate agent and lender will better connect you with the local market conditions and available homes.
In addition, having the same team for both selling and buying can improve your timing and give you a competitive edge because your team will be in lockstep throughout the processes.
Use contingencies
Unlike backup plans, a contingency is like a flow chart of possible actions based on various scenarios. So go ahead play out various outcomes so you can fully have an idea of the consequences.
A back-rent contingency can be pivotal as you transition from one home to the other. If you need some extra time after selling your home to get into your new one, you can negotiate rent-back. This lets you rent the home from the buyer for a certain amount of time after closing.
