How To Successfully Sell Your Home and Buy a New One Simultaneously
If you’re not moving from a rental, a relative’s home, or a property you plan to rent out or use as a second home, chances are you’ll need to sell your current home and buy a new one at the same time. This process can feel overwhelming, even for seasoned homeowners. It’s often a tricky balancing act: Do you focus on selling your home to know how much you’ll have for the new one, or do you concentrate on finding your next place so you’re not left without somewhere to live?
The right approach depends on your unique situation, but I’ve seen it all when it comes to navigating this dual challenge. Here are ten tips to help you manage selling and buying a home at the same time.
1. Prioritize the Sale of Your Current Home
While it’s tempting to dive into finding your next home, the first step is to focus on selling your current property. After all, securing the best possible price and closing deal for your current home is crucial. If you’re too preoccupied with searching for a new home, you might neglect important tasks like decluttering, making necessary repairs, or staging your home properly - all of which could impact the sale price and timeline. Give the sale the attention it deserves to set the stage for a successful move.
2. Start Searching for Your New Home
On the flip side, some homeowners get so caught up in maximizing the sale price of their current home that they neglect to think about where they’ll live afterward. While a higher sale price is beneficial, it’s just as important to plan ahead for your next move. You may not immediately find a rental that fits your needs or timeframe, or you might struggle to find a short-term rental that aligns with your move-in date.
3. Choose the Right Real Estate Agent
Whether you’re moving across the street or to a new city, finding an experienced real estate agent is key. If you’re relocating to a new area, make sure to hire an agency who knows the ins and outs of that market. Balancing a home sale and purchase requires a lot of attention, and an agent who understands the local market can save you time and effort, helping you find the right home and guiding you through the process efficiently.
4. Acknowledge Your Emotions
Selling a home can stir up emotions. Even if you’re ready for a change, seeing your house empty, packing boxes, and hosting potential buyers can make you feel sentimental about the place you’ve lived in. These feelings are normal and are often tied to the memories and experiences associated with your home. If you find yourself struggling with these emotions, don’t hesitate to talk to your realtor. They’ve likely encountered this situation many times and can help keep your focus on your goals.
5. Consider Renting a Storage Unit
It might seem unnecessary to rent a storage unit when you’ll eventually have to move everything to your new home, but in this case, the convenience can be well worth the cost. A storage unit can help you declutter for staging. Ease the packing process, and keep your home looking neat and presentable for showings. Just remember, it’s a temporary solution, so take a few extra minutes to label boxes and stay organized.
6. Understand Bridge Loans
A bridge loan is a short-term financing option that can help you transition between your old home and your new one. These loans are designed to cover the gap between selling your current home and purchasing a new one, allowing you to secure your new property while waiting for your home to sell. Keep in mind, however, that bridge loans often come with higher interest rates and short repayment periods, so they should be considered carefully.
7. Always Have a Backup Plan
Even if you’ve meticulously prepared for both selling and buying, the housing market can throw you curveballs. You might find yourself with multiple offers on your home within days, or your buyer might have all their paperwork in order, leading to a fast closing. This can disrupt our plans. To stay flexible, have a list of backup options - such as short-term rentals, self-storage units, or moving services - ready to go in case you need them.
8. Evaluate Home Sale Contingencies
A home sale contingency in a contract gives you time to sell your current home before finalizing a deal to buy a new one. While this can give you peace of mind, it can also discourage potential buyers, as it introduces uncertainty into the transaction. If you’re buying, you might encounter a “kick-out clause,” which allows the seller to continue marketing the home and accept a better offer if one arises.
9. Avoid Becoming Overwhelmed
Selling and buying a home at the same time is a full-time job in itself - especially if you already have a job, family, or other commitments. This can quickly lead to stress and burnout. It’s important to recognize how you react to pressure. Some people thrive and overperform, while others shut down. If you’re feeling overwhelmed, focus on developing strategies to stay calm and productive during this busy time.
10. Keep Your Goals in Mind
The selling process can consume your mental energy, leaving you tempted to accept an offer just to be done with it. However, it’s crucial to evaluate whether that offer aligns with your goals. Is it the right price for your home? Is the buyer ready to move forward? Holding out for a better offer might be worth it. Your realtor can provide valuable insight to help you make an informed decision, even if it means being patient.
Selling and buying a home simultaneously may feel like a marathon, but with the right strategy and mindset, you can successfully navigate the process. Think of your realtor as your coach - they’ll help keep you focused, prepared, and supported as you work toward your goal. With proper planning and patience, achieving your objective of buying and selling at the same time is more than achievable - it’s practically a sure thing.
