The Best Way to Buy and Sell a House at the Same Time
As you begin your journey for a new home, you may wonder how buying and selling homes at the same time is possible. Aside from timing two closings, you have to look for a new home while trying to find a buyer for yours.
You might find yourself wondering how to sell your home fast, and whether or not it’s better to sell your house before buying another.
While there are different avenues you can take when buying and selling homes at the same time, the best solution will depend on your specific circumstances.
If you’re interested in learning the best way to buy and sell a house simultaneously while working with a seasoned real estate team, then keep reading. You’ll learn everything there is to know about this seemingly complicated process and go into your next home purchase more informed than ever.
Determine Your Finances
There are several different ways to go about buying and selling homes at the same time. The first step in determining your course of action is to figure out whether or not you can carry two mortgages for some time, should you opt to sell your home after purchasing a new one.
When making this decision, take into consideration the housing market in your area.
Are homes selling faster than usual? Do you notice houses in your neighborhood flying off the market days within being listed?
If you’re unsure, then talk to a trusted realtor about purchasing a home before selling yours. This way you’ll receive honest, up-to-date information from a knowledgeable professional.
If you feel comfortable purchasing a home before selling your current house, then contact your mortgage lender to discuss how much money you’ll need to put down on a new home. If you’re comfortable with the downpayment amount, then selling your home after you purchase a new one may be a viable option.
However, if you feel you should wait to sell your home before purchasing a new one, then you can discuss with your realtor home sale contingencies.
What Is a Home Sale Contingency?
If your house is on the market but you’ve yet to find a buyer, it can be stressful when you come across the home of your dreams. As you prepare to put in an offer, you may find yourself faced with a home sale contingency.
But what is a home sale contingency?
Simply put, a home sale contingency is a clause in a contract that states the purchase of your new home is contingent on the sale of your current house. Unfortunately, not every seller will accept a home sale contingency, especially if they have multiple offers on their home.
This scenario is ideal when it’s a buyers market. If this isn’t an option, you may need to resort to purchasing your new home before your house has sold, or you could list your current home and wait until it’s under contract before attempting to purchase a home.
Utilizing Savings
If you have savings to fall back on, you may be able to purchase your new home with any funds you have set aside. While it can be daunting to purchase a home before selling an existing one, remember you have several options to help you avoid carrying to mortgages.
First, ask for an extended closing date. This will help you find a buyer before you have to start paying the mortgage on your new home.
Next, discuss with your realtor the possibility of renting your current home should it fail to sell within a reasonable amount of time. This is one way of moving forward with your new home purchase and an excellent means of avoiding two mortgage payments.
Home Equity Line of Credit
Another way of securing a house for sale in Sussex County, NJ is by utilizing a home equity line of credit. You may be able to procure the necessary funds to put down on a new home while your equity is tied up in the house you’re trying to sell.
Once you sell your current residence you can pay off your home equity line of credit and enjoy your new house for years to come. This simple solution is a way of moving forward with purchasing your brand new home without worrying about when your old house will sell.
Buying and Selling Homes at the Same Time
No matter which avenue you choose to take, buying and selling homes at the same time is attainable with a little time and patience. If you find a buyer for your house before closing on your new home, you’ll be able to apply that equity towards the purchase of your new residence.
If you’re unable to sell your current home ahead of closing on your new house, rest assured there are several ways you can still make your new home a reality.
Whether you choose to carry two mortgages, use savings, or take out a home equity line of credit, The Erins Team will help you find a way to purchase your next home. Our commitment to excellence and dedicated sales team is here to help make your dreams of homeownership a reality. Reach out to us today to discuss all the ways we can guide you on your home buying and selling journey.