Buy and Sell a Home at the Same Time

Posted on Friday, January 8th, 2016 at 2:29pm.

Buy and Sell a Home at the Same Time

In a perfect world, you would buy a new home, move into it, and then sell your old home. If only it were so simple! Buying a new home and selling your old one at the same time is a balancing act for most of us - finances and timing can make things tricky! Check out our top 5 stress reducing tips if a move is in store for 2016.

Know the Market- As with any home sale or purchase, it’s important to know the state of the market in your area. Austin is currently in a seller’s market, where there is a lot of competition for buyers. However, the market can vary in different neighborhoods and suburbs. Talk to a Realtor about the state of the market in your area. Your Realtor will be able to advise you on how best to approach both your home sale and purchase.

Schedule Carefully- One of the biggest decisions you will have to make in a buy and sell situation is whether to buy a new home before selling your old one, or focus on selling your current home before buying a new one. Purchasing a new home first means you could be responsible for two mortgage payments while waiting for your old home to sell. Choosing to sell your current home first means you will only have one mortgage payment, but you will need to find a temporary place to live while you purchase a new home. Both scenarios have their pros and cons, so it’s important to examine each option carefully before making a final decision.

Be Prepared- Even the best made plans can fall through, especially in an important transaction like buying and selling a home. For example, you may have the perfect buyer lined up, but it turns out they didn’t qualify for a home loan; or the home inspection report came back with multiple items in your home that need to be repaired. While it’s impossible to predict each and every problem that may arise during your home purchase or sale, try your best to prepare for potential pitfalls ahead of time.

Know Your Finances- One of the best things you can do to achieve a home purchase and sale at the same time is to shore up your finances. Having a financial plan in place ahead of time can help guide your decisions if any problems arise. For example, if you’re unable to move out of your current home after you sell it, you may be able to work out a lease-back agreement with the new buyers. A lease-back allows you to live in your current home for a set period of time after it is sold. You may also be able to add contingencies to your home purchase contract that the purchase be dependent on the successful sale of your old home. Discuss your options with your Realtor and lender before making any huge financial decisions.

Keep Anxiety in Check- Trying to buy a home while selling your old one can be a stressful situation. However, the transition has the best chance of going smoothly if you keep your stress and anxiety in check. Some buyers may compromise on their new home purchase just because they feel stressed to buy as quickly as possible. In addition, sellers may be tempted to accept a low offer since they feel desperate to sell their home. Don’t give into the stress of buying and selling a home at the same time; make the smart decision for you!

If you’re thinking of buying a new home after selling your old one, our agents have lots of experience handling these delicate transactions. Contact us today to get in touch with one of our  expert agents!

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