Let's face it, buying and selling a house at the same time can turn out to be a pain at worst – and at best. Even though it is a balancing act, various risks are involved. To carry out the task in a well-organized manner, various things such as efficient logistics management are required.
We have taken the opportunity to outline all of the options for you so that things become a little easier for you.
What Are the Challenges of Buying and Selling Simultaneously?
When it comes to buying and selling a house simultaneously, one has to face several challenges. Why? Let us bring into your knowledge.
· Funding Struggles
Unless you’re a rich person who has a stash of cash at hand, it might become difficult for you to come up with the money for a down payment while the equity is tied up in your current home.
You may have the option to do a cash-out refinance on your current residential house, sell some investments or take out a home equity line of credit. Still, these options have costs associated with them and may not always be the ideal solution to your problem.
· Complicated Logistics
In buying and selling, there are several decisions and details that need to be focused on. Especially when they all happen at the same time, homeowners may get into some serious problems.
Logistics involve the timing of the sale and purchase and negotiations with both sides on several factors such as possession or moving dates and the organization of the belongings to prepare for the move. This is where a real estate agent kicks in and takes some stress away from the homeowners.
Let’s think of a scenario in which you’ve found your dream house that checks all of the boxes, that too at a reasonable price. The only problem is that your home isn’t sold yet or perhaps isn’t even listed yet. Despite the situation, you still decide to not pass on this chance to pursue your dream property.
We have taken the opportunity to list down some of the tips that will help you in navigating the buying process while managing the risks and stress efficiently.
· Get in Touch with A Trusted Agent
A real estate agent may help you out in ways that you can't even imagine. That agent may discuss your situation with a lender who can perform an in-depth analysis of your situation and help you get preapproval for the loan before you sell your current house.
· Make an Offer Satisfying Both Buyer and Seller
If you think that carrying two mortgage payments side by side would become difficult for you, you have the option to make a contingent offer. This means that you would only buy the property on the condition that your current house sells. According to the contract, if the house doesn’t sell, you won’t lose your earnest money.
However, even though you would be successful in eliminating your financial risk, the only drawback is that it will weaken your offer.
· Look Out for Cash Buyers
If you choose to buy first and sell later, the best bet for you would be to seek a cash buyer as soon as possible so that you can avoid paying two mortgage payments for extended time intervals. Working with a local real estate investment company or an instant homebuyer could help you out in a lot of ways.
If you happen to be on the list of those people who are not comfortable being on the hook for two mortgages, you can go for the option of selling your current house before buying, as it is considered to be a safer financial route.
Here are some tips that will help you in the navigation of the selling process while minimizing the risks and stress.
Before you enlist your house for selling, it is an excellent practice to go through every room and do a thorough and deep cleaning. Yes, this also includes wiping the windows, cleaning the floor and carpets as well as detailing the kitchen and bathroom.
· Being Proactive About Repairs
Before the potential buyer orders an inspection of your house, it is recommended that you do the appropriate repairs so that you can stay on the safe side. Another option is to order your inspection before listing the house so that you can know about the faults and take the necessary measures.
It is a proven fact that selling and buying property at the same time can be quite stressful for anyone. To help smooth things over, it is recommended that you avoid working solo and get help from any knowledgeable real estate agent who has experience in juggling both transactions.