How to buy and sell a house at the same time

While seemingly tricky, buying a home while selling your own is entirely doable. 

Many homeowners consider the move risky, but it’s more than possible with the right resources and planning.

Let’s discuss how to get the timing right to buy and sell a house at the same time, as we look at the pros and cons of doing one or the other first.

Can I buy and sell a home at the same time?

No matter which process you start with, they both require variables that can affect either transaction. This includes other parties, your time, and, most importantly, finances. 

For example, the process to obtain a conventional mortgage may be smooth and relatively quick, but the selling process may take longer if your buyer runs into unexpected issues.

Housing scenario

Start your scenario by understanding your current financial and mortgage situation. 

Mortgage calculators provide an advantageous starting point to buying as they provide an estimate of what you can expect in your new monthly mortgage payments.

From there, work with a trusted real estate agent to help you save time and energy in both selling and purchasing a home.

They can do the heavy lifting of finding your ideal home within your budget and help find the right buyer. 

Get the timing right

While it can be challenging to buy and sell a house at the same time, there are ways you can prepare yourself to get the timing perfect.

Assess the market and see if the rates on conventional mortgages are doable for you.

You’ll need to provide specific documentation when applying for and closing a mortgage. 

It’s helpful to have all the required documentation on hand. If you’re buying and selling at the same time, you won’t want to be held up waiting for anything. 

Be ready to show

If you’re buying and selling at the same time, have your home ready to show. If buyers are eager to offer, keeping your home tour-ready can save time. 

Finally, suppose you have a home in mind and already know it’s within your budget. 

In that case, you can get started buying as you sell your current home or finish the process of selling first.

Getting the right timing is essential, but it’s not the only factor to consider when you buy and sell a house simultaneously.

Pros and cons of buying first

Pros of buying first

Buying the house first is usually considered a safer move, as the most obvious pro is that you’ll have a place to stay while selling your house. Should anything happen during the sale, you can still be in the comfort of your home.

You can also take your time as you’re not rushed to move, allowing you to find the right home and lessen the chance of finding a house out of haste.

Buying first guarantees that you have a home to move into once your current home sells rather than the potential of having to find alternate solutions. 

Having to stay in a hotel or short-term living can become costly and inconvenient. 

Cons of buying first

The biggest con is the flip side of staying in your current home. You’ll have to pay mortgage payments on your existing and newly-purchased home simultaneously.

How costly this becomes depends on how quickly you can sell. It may become more challenging to qualify for a new loan as lenders may see this as a risky transaction.

Pros and cons of selling first

Selling a home first tends to be the more popular avenue.

Pros of selling first

One of the primary reasons is you’ll have the money from your sale to move forward with your purchase.

Selling your home first also saves you money by not having to pay for two mortgages simultaneously. 

Another benefit is that it may make it easier to qualify for another mortgage. Lenders will see your situation as less of a risky transaction. 

Cons of selling first

The most feared con is that selling first essentially leaves you without a house if you don’t have anything lined up or somewhere to stay while you house hunt.

It’s recommended to have a storage unit or space to house everything. If buying takes a while, this can become costly.

Another con is that if the market changes or you’re unable to find your home, you may get stuck in making a hasty decision. This can lead to the purchase of a home you wouldn’t necessarily go for or at a higher rate than initially planned.

While both options have pros and cons, the decision ultimately comes down to your financial goals.

Deciding what is best for you

While we can’t decide what’s best for you, we can guide you in the right direction and provide you with the tools to help you obtain your dream home. 

When deciding if buying and selling your home is the right decision, you should consider the following:

• Current housing market trends
• What you can comfortably afford
• How soon you need to move
• If you need somewhere to stay
• Is your home marketable
• Finding the right real estate agent
• Finding the right lender

What are your resources?

Know there are resources available to help get you up to speed and help you find and afford your dream home in the event you want to buy and sell a house at the same time.

AAA Banking’s partner, HomeScout is an incredibly beneficial resource that helps you from start to finish.

You can search for homes, and connect with a trusted real estate agent, and it enables communication through the grapevine between the buyer, real estate agent, lender, and seller. 

It’s an all-in-one hub that supports you every step of the way.

Photo by Maria Ziegler on Unsplash