Selling a home to buy a home at the same time can be a daunting task, which I assume has led you here. There are a couple of reasons you would sell a home and buy one at the same time. It could help qualify you to buy the new home or unlock more money to increase your price range. This guide will help ensure you minimize your risk and will set you up for success when the time comes!
Determine the Price of Your House
The easiest way to find a realistic sales price is to ask for help from a local realtor. Even if you don’t plan to use a realtor (which I would not recommend), most will give you a market analysis of your house. Knowing the profit from the sale of your house will be a good place for you to start and will be needed later on down the road.
Get Pre-Approved with a Lender
When buying a house, this is always the first step. If you have not been pre-approved by a lender or do not have proof of cash to purchase a property, then even viewing a property could prove difficult. If you can’t prove that you can buy a house, in most cases, the seller may not even consider your offer. Also, getting pre-approved will determine how much you want to spend by supplying you with your estimated closing costs and what your payments will be.
Make Sure Your House is Ready to List at Any Moment
Before making any offers, prepare your house to be sold. This process will happen quickly; being prepared to list will reduce stress. Make sure to keep it clean and have any necessary repairs completed. The idea is to have it under contract as soon as possible. If needed, consult with an agent to ensure you will get the maximum profit when it comes time to sell.
Get a Property Under Contract
Now comes the fun part: House hunting! With all of your ducks in a row, it’s time to start searching for your new home. In a slower market, your offers will have to be contingent upon the sale of your house. If the market is moving quickly and steadily, it may not be necessary to have that contingency. Once you have a home under contract, the clock starts. Trust me, you will be thankful that your house is ready to be listed.
List Your House ASAP
A general rule of thumb is to have your house listed within three days of your banded purchase contract. Since you did so well at preparing, you can have it listed sooner as this will help ensure that your house will be sold at the same time as the house you purchase. If you can allow showings at any time, including the day of listing, it will improve your chances of getting under contract.
Schedule With the Closing Attorney
For the smoothest outcome, try and have both properties close with the same closing attorney. It will help solve logistical issues and the funds will be accessible immediately to put towards the buying transaction. Since it is all being done through one attorney, it will be easier to resolve any difficulties that may arise as the attorney is familiar with both transactions.
Selling your home can be very rewarding, but there will be a lot of moving parts since you are dealing with two transactions. Start with familiarizing yourself with the process – it will be less stressful when you know what to expect. It would be best to have an agent that has done it before!
