Can I Buy and Sell a Home Simultaneously?

While this question is nuanced, the short answer is Yes! You can!

The longer answer is … Yes, but it can be complicated. It requires careful planning and coordination. Here are a few things to consider before making the move:

Timing and Logistics

Coordinating the sale of your current home with the purchase of a new one can be tricky. You may worry about overlapping timelines which could lead to temporary housing needs or financial strain.

A few main options we recommend to navigate this are:

1. Look into financing options that would allow you to purchase a new home before selling your current one (making you non-contingent in the buying process) such as a bridge loan or HELOC.
   Pros: This situation can be beneficial because it can allow you to use the equity in your current home to buy a new home without having to worry about where to live when you sell and enabling you to clear out your current home and have it staged to hopefully lead to a quicker and higher-priced sale.
   Cons: There are financial risks and you have to be prepared to potentially carry two mortgages if your current home does not sell quickly.

We have some amazing lenders who can share the ins and outs of this process and help you assess the risks versus the benefits to see if this would be a good option for you.

1. Sell and negotiate extended occupancy after closing.  This means that you would list your home while living in it, before putting in an offer on a new home.  During the sale process you would negotiate extended occupancy, meaning that you would be permitted to continue living in the home after you close with the new buyer for an agreed upon amount of time.  Pros: This will enable you to have some time to find a new home, while still having a place to live. You can use the equity of your current home toward the purchase of a new home without the risk of holding two mortgages.
   Cons:  You will be on a strict timeline to buy and vacate. You run the risk of having to move out and find temporary housing if you do not close on a new home before your extended occupancy ends. Additionally, depending on the length of time and the negotiations with the buyer regarding the terms of your extended occupancy, you may need to pay rent to remain in your home.

2. Write a contingent offer, meaning that you let the seller know that you need to sell your own home before you can buy theirs. 
   Pros: This may be beneficial for you from a financial and logistical perspective. You will not have a risk of holding two mortgages or having to move before closing on your new home. Cons: However, this may make your offer less desirable to a seller,  in turn making it less likely to get accepted. Also, if your contingent offer does get accepted but you are unable to sell your home within the agreed upon timeline stated in your offer, you may be found in breach of contract and lose the home you are intending to buy.

Financial Considerations

Each of the above mentioned options have certain financial ramifications that must be considered such as:

1. Down payment. This could come from personal savings, a monetary gift, the proceeds of the sale of your home or from the equity in your house if you use financing such as a HELOC or bridge loan.

2. Multiple mortgages. This can create obvious burdens if your cannot float this amount of money for a bit.

3. Rent (if you are either asking for extended occupancy AND do not negotiate this to be free of charge OR if you choose to sell first and then rent for a season before buying).

It is important that you look at your finances carefully, speak with a mortgage lender and a financial advisor, and make the decision that is best for you and your family.

Market Conditions

Just like any time you buy and/or sell, the housing market has a huge affect on the outcome of the process. Expert Agents can assist you with:

1. Understanding Local Trends: An expert Agent can explain current market conditions to set competitive prices and clear expectations for both buying and selling.

2. Seasonal Variations: An expert Agent help you try to time your transactions to align with market highs to maximize your benefits if your situation allows for some flexibility on your selling/buying timeline.

3. Knowing What It Takes To Win: An expert Agent knows that negotiations for offers change dependent upon how hot the market is. They should make sure you know what type of competition is out there, how to write a winning offer, and how to negotiate the best sale price and terms for your needs.

Emotional Preparedness

Moving can be a stressful time whenever you do it, but it can be even more stressful when you are trying to buy and sell at the same time.  Before beginning this process make sure that you have a plan in place to:

1. Manage Stress: Recognize the emotional challenges involved and prepare for the transition.

2. Stay Organized: Keep track of important dates, documents, and tasks to reduce anxiety.

3. Be Prepared: Last minute complications can happen in real estate transactions and you will be involved in two at the same time which increases the likelihood of hiccups.

Lean on the Professionals

Realtors exist for a reason. Finding an expert Agent who can help you navigate the ins and outs of the home buying and selling process can be monumental in relieving stress, financial strain and overwhelm.

We frequently help families who are buying and selling at the same and are pros at carrying the load so that you don’t have to. Reach out today and let’s chat about how we can help serve your family!