Both buying and selling a home are equally stressful, but what about when you are trying to coordinate both at the same time? There are a lot of moving parts, so hiring a top Realtor who has innovative strategies is key to making the transaction go smoothly. If you are selling your home and want to close on a new home purchase at the same time, here are some things to think about to make your move as smooth as possible.
Truly simultaneous closings are rare these days, especially when financing is involved, but it is possible.
There are regulations put in place to protect consumers that have made simultaneous or double closings very difficult to pull off. Concurrent closings occur when a party is selling and buying properties at about the same time, usually within a couple of days of each other. If you wish to close on the sale of your home and the purchase of a new home back-to-back, the best scenario is to work with the same team for both transactions.
Your Realtor will be key in streamlining the steps from selling your home, making sure all contingencies are removed by your Buyer, and then coordinating the timing for when you have to remove your contingencies to purchase your new home. It probably sounds complicated and like a juggling act; that’s because it is. Hiring an experienced Realtor who knows how to strategically list your home, allow ample time to find a new home and coordinate the two closings is crucial. Top Realtors have the know-how, industry experience, and the connections to help make your sale and purchase go smoothly.
Usually the sale of your home is closed first.
In a perfect world, your Buyer makes an offer, you accept, they complete their inspections, obtain a loan and close on the purchase of your home. Easy, right? Not always. During their contingency period, a Buyer can cancel at any time, which makes your Realtor important in managing the transaction, holding it together. You want your Realtor to have the ability to foresee any potential issues that can arise.
Issues such as deferred maintenance and major repairs that can affect a Buyers decision to move forward. With a Top Realtor they will utilize their expertise during your initial evaluation to circumvent any problems down the road to create a smooth and seamless transaction so that you don’t risk losing the home that you are looking to purchase. Once you have your property sold, you can successfully pay off your mortgage.
During the time that you are selling your home, you are also acting as the Buyer on the other end working to obtain a new mortgage to purchase your new home. This requires finding the home you want to buy, having a game plan on how to transition from the home living in to moving into your new home, obtaining a new loan to finance your purchase and once closed, the move itself. The goal is to take the stress and pressure off you, the Homeowner, to allow you to focus on the purchase of your new home and not overwhelm you during the process.
Selling your home ahead of buying is the most risk-free alternative, as neither transaction is contingent on the other.
However, this requires your family to make an extra move and have a place to live while you wait to close on a new home, so in terms of convenience and expense, it’s not always the best scenario, or the easiest. If you have the ability to secure a short-term rental, or to put your belongings in storage and stay with family, then you can enjoy the luxury of taking your time to look for and close on your new home.
Your best option that is common these days is to remain in possession and rent your home back from your buyers while you wait to close on your purchase. This works well when the buyers are not in a hurry to move in themselves and you can agree on a timeframe for you to remain in the home. This agreement is made up front so that you are aware of the time you have to find a replacement home and time to get moved after the closing. Allows for you to plan ahead.
If you don’t have to sell your home in order to purchase another one, then buying ahead of selling is a dream in terms of convenience.
You can take your time moving, and maybe do some renovations or decorating before you move in. But will you qualify for a new mortgage without a contingency on selling your existing home? If you can swing the mortgage, or are paying cash, it may be a great option for you. Remember to realistically consider how long you can afford to maintain two properties– with maintenance costs– in case it should take you longer than expected to find a buyer for your present home. In this scenario, you may want to rent your new purchase back to the sellers, or list it as a short-term rental while you wait to close on the sale of your existing home. Work together with your Realtor on options, solutions, and the best game plan for you.
Something to keep in mind that is often not thought of in the mix of buying and selling your home. You want to consider your buyers and sellers carefully when trying to coordinate a sale and purchase within a short amount of time. The last thing you need is a seller or buyer who is displaying signs of being uncommitted to the deal or difficult to work with. While no deal is guaranteed until all the closing documents have been signed, when you need a purchase or sale to coincide with your schedule, you should carefully evaluate who you sign a contract.