How to buy and sell homes at once without losing your mind

Buy and sell homes at once - what comes first - people with moving boxesIt can be a little nerve-wracking to sell one home and purchase another at the same time. How do you buy and sell homes at once – without losing your mind?

Talk to a lender first

It is a very good idea to talk to a great lender upfront and to be pre-approved. That way, you’ll be more certain of what you can truly afford, and no matter which order you plan to do the two house juggle, you’ll be ready.

The main options when you want to buy and sell homes at once

These are the most commonly used strategies to buy and sell homes at once:

  1. If you have equity, pulling money out of the current house may be an option, or perhaps you can use a bridge loan, you may be able to buy the next home first.
    • In that case, you can move to the new home, then stage and sell the current one. For most people, this is less stressful.
  2. Or will you only purchase after you have cash in hand?
    • With this approach, you could move out and stay in a rental, stage and sell the home and then buy the next residence with cash in hand.
    • Or you could live in the home while it is marketed, sold, and closed.
      • You may be able to stay on after the close of escrow as a renter in your home for up to 60 days. That is often enough time to buy and close on the replacement property.
      • You might be able to have a longer close of escrow and be able to purchase the home “subject to the successful close of escrow” of the current place. This is not the most viable way to buy in our current, inventory starved market, though.
  3. Another option is to move out, rent a temporary residence, sell, and then buy. Depending on the rental, your own belongings could furnish it, or you could have your things in storage.

Possible option 1 – buying first & moving out to sell

If possible, many people doing these two major transactions at once prefer to purchase first. the advantages include not having to move twice and not having to live in a home that is being shown, inspected, and requiring a pristine condition at all times.  For people working from home and families with young kids, this is often the way to go, as it is too disruptive to live there during the marketing and sale process.
(more…)