Thinking of moving? If you’re buying a new home while selling your current one, you’re probably wondering how to handle the complex juggling act of two properties—and possibly two mortgages. The good news? With the right approach, you can navigate both transactions with confidence and transition smoothly into your new home. Here’s a step-by-step guide to help you through it.

How To Sell Your House And Buy A New One at the Same Time

Buying and selling at the same time isn’t without its challenges, but it’s far from impossible. Here are key steps to help you succeed.

1. Understand The Real Estate Market
   First, connect with a trusted real estate agent who knows the markets you’re both selling in and buying into. Knowing whether each market favors buyers or sellers will help you set realistic expectations for timelines and pricing.
   • Buying in a Buyer’s Market: A buyer’s market means homes aren’t selling as quickly, giving you the advantage. Sellers might be more willing to negotiate terms, such as accepting a contingent offer that depends on you selling your current home first.Buying in a Seller’s Market: In a seller’s market, homes often move fast, and you may face multiple bids. While this can make buying more competitive, the good news is your current home should sell quickly, which reduces the risk of being stuck with two mortgages.
   This understanding will help you set clear goals and realistic timelines for both selling and buying.
   
2. Review Your Finances Thoroughly
   Reviewing your financial situation is crucial for buying and selling at the same time. Start by assessing whether you have the cash on hand for a down payment on the new property, as well as enough savings to cover closing costs.
   • If You’re Financially Flexible: If your finances allow, you may be able to close on your new home before your current one sells.
   • If You Need to Sell First: If your budget can’t handle two mortgage payments, you may need to close the sale of your current home before purchasing your next one. Building up a cash reserve or researching financing options could be beneficial.
     
3. Explore Alternative Financing Options
   Even if you plan to sell first, financing options can help you manage any gap between buying and selling. Bridge loans, for example, provide short-term financing to cover the purchase of your new home before your old one sells. Similarly, a home equity loan might give you the funds you need for a down payment or closing costs while you finalize the sale of your current property.We’ll cover more of these funding solutions in the next section, but know that there are options out there to help make buying and selling at the same time financially feasible.
   
4. Find an Experienced Real Estate Agent
   Working with a knowledgeable real estate agent is invaluable for managing both transactions simultaneously. An experienced agent can help you:
   • Prepare Your Current Home for Sale: They’ll help with staging, marketing, and open houses to attract buyers quickly.Navigate the Purchase of Your New Home: Your agent will be on the lookout for properties that meet your needs and guide you through the offer process.Coordinate Temporary Housing: If there’s a delay between selling your old home and moving into the new one, your agent can help arrange short-term accommodations or storage for your belongings.
   By enlisting the help of a professional, you’re setting yourself up for a smoother transition.
   
5. Include Contingencies in Your Offer
   Making an offer on your new home contingent on the sale of your current home is a common strategy. This contingency gives you a buffer, stating that you’ll only proceed with the purchase if your current home sells. A few things to keep in mind:
   • Risk Reduction: A contingent offer means you won’t be financially stretched with two mortgages.
   • Drawbacks in a Competitive Market: Sellers in hot markets may pass on offers with contingencies, so this strategy is most effective in balanced or buyer’s markets. Discuss this with your agent to assess if it’s a viable option for your specific situation.
     
6. Prepare to Move Quickly If Needed
   When your offer on the new home is accepted, being organized will help you close quickly. Keep these tips in mind:
   • Document Preparation: Have financial records ready for your lender and be responsive to any requests.Transparency in Selling: Be upfront about any repairs or issues in your current home so potential buyers are fully informed. This can help prevent delays in closing, as buyers may be less likely to back out due to surprise inspection findings.
   Being well-prepared on both sides of the transaction can speed up the process and reduce stress.
   
7. Have a Backup Plan
   Despite your best efforts, there’s always a chance that things won’t line up perfectly. If the closing on your new home is delayed, or your current home doesn’t sell as quickly as anticipated, it’s wise to have a backup plan in place.
   • Options for Temporary Housing: Consider short-term rentals, such as through Airbnb or Vrbo, or ask your agent for help finding a short-term lease.
   • Post-Sale Occupancy Agreement: Some buyers allow sellers to stay in the home for a period after closing, giving you more time to transition.
   A backup plan provides peace of mind, knowing that a bump in the road won’t leave you scrambling for a solution.

By planning ahead, staying flexible, and partnering with the right real estate agent, you can make buying and selling at the same time as seamless as possible. Ready to make your move? We’re here to help!