Tips for Buying and Selling a Home at the Same Time
If you own a home and you’re thinking about moving up to a bigger space or downsizing, you’ll likely buy and sell at the same time, which can be challenging. Many homeowners find themselves in a similar situation, but this doesn’t make the process any less complicated. You’re dealing with two separate transactions and it can prove difficult to perfectly time both closings.
Even so, there are ways to get through this scenario without losing your cool. Here are a couple of tips for juggling buying and selling a home at the same time.
1. Find a Good Real Estate Agent
Selling your home without the assistance of a real estate agent can lower how much you pay in real estate commissions. But if you don’t have real estate experience, coordinating a home purchase and a home sale simultaneously can be stressful and confusing. By partnering with a real estate professional who handles pricing, showings, negotiations and the paperwork, you can offload this heavy lifting to an experienced professional.
Since the agent will represent you as a buyer and a seller, search for an agent who has ample experience working on both sides of the transaction. These circumstances present unique challenges for buyers and sellers, and a knowledgeable agent can offer advice and recommendations for a smoother transaction.
Your agent can write up listings and contract offers to benefit your interests. And since real estate agents are familiar with the local market, they know how much you can realistically get for your home. Also, if you make an offer on a house before selling your current home, your agent can include a contingency clause stating that the contract is dependent on your ability to sell your existing house.
2. Speak With a Mortgage Lender
Speak with one of our loan experts at Cherry Creek Mortgage before listing your home for sale. We can review your credit, income and assets to determine your eligibility, and we can issue you either a pre-approval or a FasTrac approval for a new mortgage that specifies how much you can borrow for your next home. The last thing you want to do is list your house for sale, accept an offer and then learn that you don’t qualify for a new mortgage.
We are happy to discuss your lending options and let you know how much you can afford to spend on your next property.
In addition, our loan experts can assess whether you’ll need to sell your existing home before making an offer on a new property, or whether you can purchase a new home before your existing home sells. Both outcomes depend on your income and what you can comfortably afford. If you have sufficient income, you might qualify for a new mortgage while still carrying an old mortgage. In this case, you can purchase and close on a new home anytime, and then take your time selling your old home.
If you don’t have sufficient income, your mortgage pre-approval will likely be contingent on your ability to sell your present home. Keep in mind that a mortgage pre-approval will eventually expire. So ideally, you want to find a buyer for an existing property soon after receiving a pre-approval letter, or else you might have to repeat the pre-approval process.
There’s no way to predict how long it’ll take to sell an existing home. Therefore, it might be safer to wait until you have a solid offer on your current place before beginning the search for a new home. This can reduce the likelihood that you’ll have to either carry two mortgages or bow out of a new home contract because your current home doesn’t sell quickly enough.
Contact us today to discuss your mortgage options and begin the process of buying a new home.