Buying and selling a home simultaneously can feel like a balancing act. Here’s where to begin to maximise your strategy and minimise stress.
1. Evaluate Your Financial Situation First
Before you start buying and selling, take a close look at your finances. It’s best to know what you can afford without relying on the money from your home sale. If that’s not possible, there are ways to cover the financial gap.
Get pre-approved for a mortgage and discuss options like a home equity line of credit (HELOC) or a bridge loan with your lender.
- Bridge Loan: A short-term loan designed to help finance when moving from one house to another. This type of loan usually uses your current home as collateral, but some lenders might accept other assets instead. Be sure to check with your lender if this option is feasible.
- HELOC: Allows you to borrow against the equity of your current home to help pay for a new one. This is especially useful if you’ve built substantial equity in your existing property.
2. Work with a Knowledgeable Real Estate Agent
Choosing an experienced real estate agent like Randy and Heidi who knows the local market can benefit you in a buy-sell scenario. Having a pro beside you will be helpful with timelines, negotiating, strategy, and understanding what it takes to close on both properties in a competitive market.
Also, consider hiring the same agent if you’re buying and selling in the same market. This can make communication easier.
3. Determine Which Comes First: Buying or Selling?
- Buying First: You can avoid the stress of finding one fast. However, this means you need to afford two mortgages temporarily or be ready for a quick sale of your current home.
- Selling first can free up capital, giving you a clear idea of your budget for the new home. However, you may need to arrange temporary housing if you can’t find a new property in time.
Consult your agent to understand which option fits your needs based on market conditions.
4. Consider the Contingency Option
Depending on market conditions, including a home sale contingency (where you buy a home only if your current home sells) may still be an option. Discuss with your agent whether contingencies could work in your favour, especially if the local market allows for them.
- Alternative Solutions: If contingencies are a challenge, explore other options, like a rent-back agreement. In a rent-back, the buyer of your current home allows you to stay temporarily after the sale closes, giving you extra time to shop for your new home with the money from your sale.
5. Start Preparing Your Home for Sale Early
Preparing your home for sale in advance will save time and reduce stress when the time to list arrives. Start by decluttering, cleaning, and handling any necessary repairs.
- Tip: List your home as “Coming Soon” with professional photos to generate early interest and boost demand for a quicker sale.
6. Stay Organized with Clear Timelines and Checklists
Managing a dual transaction requires a clear timeline and being on top of deadlines. A checklist can help you track important dates for inspections, financing, and closing.
- Create a Schedule: Work with your real estate agent to coordinate showings, moving dates, and key deadlines. Use digital tools or apps to track deadlines and keep documents easily accessible.
7. Plan for Moving Day Logistics
Moving day can be hectic, especially when buying and selling a home at the same time. Consider hiring professional movers and, if possible, stagger your moving dates to allow for some flexibility. If you can’t move directly between homes, look into temporary storage options.
- Tip: Pack an “essentials” box with items you’ll need immediately in the new house (e.g., toiletries, basic kitchenware, a few changes of clothes) so you aren’t searching through boxes.
- Helpful links: How to Pack Like a Pro and Checklist to Prepare for Your Move.
Buying and selling a home at the same time can be easy with the right steps and professionals to help you. Get the right support to smoothly transition into your new home. Call us today!