If you currently own a home and want to buy a new property, the chances are you’re going to have to navigate selling your current home and buying your new home at the same time.
But what, exactly, does that look like? What do you need to know to successfully buy and sell property simultaneously?
A recent video from realtor.com outlined a few key factors to consider when buying and selling a home at the same time, including:
- You probably have money to work with. If you’ve owned your home for more than a few years, there’s a solid chance that you’ve gained equity in the property. That equity can help to fund your new home purchase—either by acting as a down payment to pair with your new mortgage or, if you’re downsizing and have a lot of equity, to help you come in with an all-cash offer on your new property.
- The market is less competitive—which means sellers may be willing to work with you. When compared to the past few years, the real estate market has cooled off quite a bit. There’s less competition, and less competition means that sellers may be more open to accepting an offer that’s contingent on the sale of your current home, which many sellers wouldn’t even consider in a hyper-competitive market.
- It’s important to understand the pros and cons of selling first vs. buying first. One of the biggest decisions to make is whether you should sell your current home, or buy your new home first. Before you make that decision, it’s important to understand the potential drawbacks of each. For example, if you sell first, you have an absolute deadline to move out—and if you haven’t purchased a home by that date, you may need to put your belongings in storage and look for temporary housing until you find your next property. On the flip side, buying first can put pressure on you to sell your home quickly, which could lead to you selling your current home for a less-than-ideal price. If you’re unsure whether to buy or sell first, talk to your real estate agent; they can help you weigh the pros and cons and make the right decision for you and your specific situation.