How to Sell and Buy a Home Simultaneously

How to Sell and Buy Home Simultaneously

The new mortgage guidelines have created questions about how to sell and buy a home simultaneously. Like millions of other Americans you have realized the dream of home ownership and live in what was the home of your dreams. Two children and a new job across town later you have a new dream of home ownership – a bigger home all the way across town. Can this still be done?
The answer – in a nutshell – yes. But answering the question about how to sell and buy a home simultaneously now requires a LOT more planning. And things have to go right. This is not a time to be dealing with amateurs. You will need a TEAM of professionals to make it work, You will experience anxiety and the process is like walking a tightrope. Everything has to be balanced.

What has changed? New lending laws require Mortgage Lenders to disclosures to the Buyers to be made three days in advance of closing. Also – Sellers don’t get to see the old “Hud Closing Statement” and will not get to see their numbers until closing (unless they have a savvy real estate agent). ANY changes require a fresh three day waiting period. So if you have a moving truck scheduled on the 15th and the closing attorney makes an error on the Buyer’s Disclosure – your moving truck can’t roll until the 18th at the earliest.Ugh!

Here are three scenarios for how to sell and buy a home simultaneously.

Sell your home then rent until you find a new home

This is the lowest anxiety level route but is possibly the one with the host hassle to you as you navigate two moves. On one hand you can work to get top dollar on the sell of your home. But you are going to spend some of this savings on the moving company – either two separate moves or a move- storage – move. If you have family or friends you can move in with while you hunt for a new home this might be a great option. Likewise house sitting for a friend or colleague who is overseas is a good option. Finding a short term rental will raise your anxiety level as the rental market is tight. One possibility is renting back from the person who buys your home. Stay flexible and you improve your odds of success.

Buy a home, Move, then sell your home after you are gone

This option works great for those with the financial capacity to make it happen. You need a good lender and the lender needs to know about bridge loans and other creative financing options. Your first task is to talk to a mortgage lender and then get them all the documents they need to get you financially pre-qualified for this scenario. Once you have all that in place the anxiety level is low – until you actually start making two house payments. You will want to know – as accurately as possibly – what your home will bring on the open market. Talk to two or three real estate agents who work your neighborhood. Get some estimates of your home value and figure how to price your home so it sells quickly. Find out what work needs to be done on your home to make it sell quickly. You are juggling here so be prepared to make changes as necessary to accomplish the task.

Sell your home and Buy a home Simultaneously

This is the only option for many homeowners. Most families do not have adequate resources to own two homes simultaneously. And they don’t have the option to sell then rent because of school needs or family requirements including pets etc. To make this happen everything needs to be planned in advance and be executed like clockwork.
First talk to a mortgage loan officer and find out where you stack up for a house purchase. DO NOT use an Internet Lender.

Simultaneously talk to a real estate agent who has contacts in the mortgage business and find out which lenders can make this type transaction work. They know. They also know who not to use.

Second, interview real estate agents. Go with the most experienced and successful agent in the neighborhood. Do not be blinded by flash – go for substance. Your agent will be your number one resource for making this happen with the least amount of anxiety.

Have your agent give you a to-do list for prepping your home for the real estate market. This may require light painting or it may mean heavy repairs. Get the work done – way in advance.

Have your agent start sending you new listings in the neighborhood where you want to live – based on the price range your lender identified as within your financial means to purchase. Start riding the streets, attending open houses and getting to know the housing market. Get some coaching from the real estate agent. Sign a Buyers Agency Agreement.

After you have completed all of the above sign a listing agreement with that experienced and successful neighborhood agent. Put your house on the market.

Simultaneously start looking at homes for sale with the agent. Most sellers – in a decent housing market – will not consider signing a contract that has a contingency to sell your home as part of the agreement. Here is where your experienced real estate agent will earn her commission. Once you have your home under contract – she will need to convince the seller of the home you want to buy that this transaction will go through and you will buy their home. This is not an easy thing to negotiate but it is critical to your success.

Once you have your home for sale under contract and the home you want to buy under contract you need to stay flexible and in direct communication with your real estate agent, loan officer and start making a backup plan.

It can be done – just takes some juggling, balancing, planning, and something for your anxiety attacks. That’s how you sell and buy a home simultaneously.