When you’re buying and selling at the same time, it’s easy to feel like you’re in over your head. You can breathe a little easier when you know what your options are for buying and selling simultaneously, and we’re happy to help!
Here are nine ways you can approach buying and selling real estate at the same time.
Buying a house right now may be the perfect time to do so because interest rates are still low. However, it’s a strong seller’s market and there’s probably a lot of qualified buyers who are vying for the same properties. When you do find that perfect property you’d like to make an offer on, it would be in your best interest to come in with your strongest offer right off the bat. Of course, you’ll want to ask your real estate agent for their advice.
Submit an offer with a sales contingency
In the event that you do find that perfect home and want to submit an offer, you have the option to include a sales contingency. This contingency states that the sale will go through as long as you’re able to sell your property first.
Use a bridge loan
Another option you may want to consider is applying for a bridge loan. This loan will allow you to take money out to use as a down payment on a new home. Once your old home sells, that is when you’ll repay the loan.
Cash in on your home’s equity
If you use a home value estimator and find that you have a lot of equity in your home, you could draw on that equity to put toward a new home. Just be aware that this option will create a lien on your property and the overall value of the property will decrease.
Are there alternatives?
Ask yourself if selling your house is an absolute must. If you don’t have to sell, you could use your old property as a source of passive income. You can rent it, you could list it on a vacation rental site, or you could list your home as a rent-to-own property. Again, your realtor can help you weigh your options.
Housing inventory is low around much of the country, so it’s highly possible that your house will sell quickly and for more money than you originally listed it for. This could be a good option if you’re able to move in with someone for the time being or find a cheaper rental. You could take the profits of the sale, put it in a savings account, and let the interest ecrew until you’re ready to put an offer on a home.
Is a rent-back agreement an option?
If you close on your old home before you’re able to close on your new home, you could ask if the buyer would consider a rent-back agreement. This basically means that you’ll continue to live in the house for a designated length of time and will continue to pay the mortgage while you’re there.
Prolong the closing the process
Typically people prefer a quick closing however you could prolong the closing process if necessary. You can ask the buyer (or seller) if they’re willing to set a closing date further out so you have enough time to settle your affairs.
Trade-in your old home
A low-risk option for selling your home quickly is to use a trade-in program or a program like Homelight’s Cash Close program.
Buying and selling isn’t as hard as you think
Buying and selling at the same time can be overwhelming but when you know your options, you can come up with a game plan. A realtor can help you weigh your options and help you choose the best course of action. Remember: when in doubt, reach out to your agent!