Do you currently own a house and plan to buy another house but aren’t sure how it all works? In this video, I’m going to show you how to buy a new home while selling your existing property at the same time. I’ll explain why timing is crucial so you don’t find yourself temporarily homeless between closings.
Buying And Selling At The Same Time
If you need to buy and sell a home at the same time, you’re probably curious about the process. This type of transaction can be tricky, so it’s important to plan. Not only can the right planning save you thousands, but it can also prevent you from becoming temporarily homeless.
When you’re buying and selling a house at the same time, there are a lot of moving parts—many of which can be contingent upon one another. But don’t worry; I’m going to tell you what you need to do and how to stay out of trouble.
Timing is what is most crucial when it comes to your sale and purchase. To do this successfully, you first need to ask yourself if you really need to sell your house before you can obtain financing for your next home. If the answer is no, the transaction can be timed in many different ways based on your goals. If you do need to sell to buy, that’s when it becomes more challenging.
All About Timing
To ensure a seamless transaction, it all comes down to timing. In a perfect situation, you do not want to be under contract on a new home to purchase until your current home has an offer or contract to purchase on it already. To achieve this successfully, we’re going to need to utilize a contract contingency—and there’s one of two ways to handle that.
First, we can ask for a contingency from the buyer or the purchaser of your home to give you time to find and settle on your next home. Alternatively, if it’s more of a buyer’s market, you’d be asking the seller of the next home that you’re purchasing for a contingency. This would allow you to put your other home under contract, settle on it, and align both of those closing dates together between your previous and your next settlement.
When the day of final settlement rolls around, you’ll need to time that even more perfectly. You’ll need to ask the purchaser of your current home to settle in the morning. Next, you’ll need to ask the seller of the home that you’re purchasing to settle in the afternoon. This way, you’ll have time in between those two settlements and can accomplish it all on the same day.
An even better way to accomplish all of this is if you have a temporary place to live. Maybe you could rent an apartment for a month or live with a family member for a month. This way, you could sell your house first and then go shopping for your next home.
If you use this method, you won’t have to use any contingencies. This means you’ll show as a stronger buyer and be even more competitive in the market. Regardless of the path you choose, the most important part of either scenario is that you don’t want to end up homeless.
Of course, we have to make sure that if you need the contingencies, you have them. It may weaken your position in an offer, but it’s certainly better than being homeless.
Getting Into Your New Home
I hope this showed you the importance of timing and getting the contingencies you need in this type of transaction. Something that makes this way easier is getting the proper representation. If you need it, I can answer any additional questions you have. We can jump on a call to tailor an exact plan that fits your unique situation.
Trust me, I help people just like you buy and sell properties at the same time all the time. I would be happy to assist you. Don’t forget to subscribe to our channel for more information on South Jersey real estate. Stay tuned to see what I feature next!