Buying a house and selling another at the same time is certainly not an easy task. That being said, while there are many things that are out of home buyers/sellers’ control, there are certain things that they can do in order to make this process a lot smoother. On that note, the following article presents key information on how to successfully buy a home and sell another at the same time.
Evaluating the state of the local housing market
First and foremost, individuals who are interested in buying and selling a house at the same time should evaluate the state of the local real estate market. Doing so will help them properly time both the purchase and the sale. For instance, in a buyer’s market, where there are more homes in the marketplace than buyers, individuals will be able to find a home easily. In a seller’s market, on the other hand, where there are more available buyers than homes in the marketplace, individuals will have an easier time selling their house.
Working with a professional real estate agent
As buying and selling houses at the same time can be an overwhelming process, it is certainly helpful to work with a professional real estate agent. Indeed, an experienced real estate agent will be able to answer all questions regarding this process and will help individuals negotiate as well as find the perfect listing price through their local market expertise.
Understanding the financial situation
Once the home buyer/seller has chosen his or her agent and clearly understood the local real estate market, it is imperative that they understand their financial situation. The latter means knowing the amount of equity in the house, the amount of cash money available as well as the loan products that the individual qualifies for.
Buying a house before selling
It is feasible to buy a house before selling the current home if the individual is in a financial position to do so, purchases the new house with a bridge loan or makes an offer with a sale contingency.
Selling a house before buying
To make selling a house before buying a new one a smooth process, individuals can sign a rent-back provision, make an offer with a settlement contingency or find a temporary rental to live in.