What is my best advice for buying a home and selling another home at the same time? It is the 2:00 am test. You have been sleeping, you wake up at 2:00 am and think (a) OMG, I bought a house and I have not sold this one…I could be stuck with two mortgages until I can get this property sold or, (b) OMG I sold this house and I have nowhere to live once it closes, I might need to rent and move twice. Good stuff. What you need to decide is which is more palatable for you.
Unfortunately, in order to succeed with buying a home and selling a home at the same time, you must, at some point, “step into the void” to get from one property to another. Buying before selling entails the possibility of owning two properties at the same time- something most folks cannot afford as their banks are only to happy to tell them. The upside of buying a home before selling your current home is that you potentially have more control of the transaction. You cannot control the inventory of homes to choose from as a buyer, but you can lower the price on your home for sale, in order to meet the market and speed up the sale process.
Selling a home before buying may mean that you don’t find your new home in the time alloted in your contracrt and you might have to rent for the short term, moving twice to get to your new home. The upside is that you have your money in the bank from your sale, and you know exactly what you have to spend on a new home – with plenty of time to find it.
Either way it seems a daunting process, however, be comforted by the knowledge that in my 20+ years of real estate sales, no one has ever had to rent or face two mortgages – not sure if that is kismet or extreme motivation but it always seems to work out!
Karen Lilley, Principal
For more info on buying and selling a home download our Better Buyer and Smarter Seller Kits.
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Find tips on buying a home by downloading our very informative Better Buyer Kit.
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Find tips on selling your home by downloading our very informative Smarter Seller Kit