Monica Breckenridge

Buying and Selling at the same time!

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Buying and selling a home at the same time is not easy. It can be quite stressful trying to coordinate two closings at the same time. It is also very difficult to coordinate things so both closings happen the same day or a day or two apart. If your house goes under contract, you may feel pressured to buy another home right away. This could force you into buying a home you really do not want. To limit the stress and ensure your next house is the right one, we recommend moving into temporary housing so you can take the time you need to find the right home. We have worked with several clients who have gone through this. Here are some things to consider:

 

Buy First, Then Sell

• You can search for a new home without any pressure

• You will not need to find interim housing and move twice

• You will face the risk of double mortgage payments if your house does not sell in a timely manner or have a backup plan, such as renting the house.

• You will need to have the cash reserves to buy the house because the equity in the home you are selling will not be available until it sells.

• Allows you to make repairs to the home after moving out. Making things easier when it comes to flooring and paint.

 

Sell First, Then Buy

• The equity in your home is immediately available to you to purchase a new home.

• You will not be faced with having to pay double mortgage payments.

• You may feel pressured into buying something quickly, which can lead you to make a rash decision.

• You may need to find interim/temporary housing, which means you may need store some household furniture and belongings.

• You would need to make the minor repairs to home while you live in the house.

 

If the stars align and you can buy and sell on the same day

• You need to have all your household items packed in a moving truck.

• You must first sell your house before you can buy a new house.

• Once you close on the new home, then you can then move in.

• Be prepared to stay in a hotel for a night or two in the event there are closing issues on either your sale or your purchase. Closing delays happen all the time, so be prepared for the worst-case scenario.

 

Risks:

If your loan doesn't go through on purchasing the new home, you still need to sell your house.  Once you are under contract to sell, there really aren't any outs of the contract unless the buyer defaults or walks.  It happens very rarely, but make sure you don't obtain any new credit or make any purchases during this time.