A lot of people buy and sell homes at the same time – often, it’s just the way things shake out. And make no mistake; having two simultaneous real estate transactions is stressful, but you can definitely pull it off if you’re working with the right REALTOR®.
Here’s what to know if you want to buy and sell a home at the same time.
Can You Buy and Sell a Home at the Same Time?
If you want to buy a new home while you’re selling your current home, these tips can help:
- Use the same REALTOR for both transactions.
- Make sure you get preapproved for your new mortgage.
- Have a backup plan for the money you need for your down payment.
- Be ready to compromise with buyers and sellers.
- Finalize the sale of your current home before you close on the new one.
Here’s a closer look at each.
#1. Use the same REALTOR for both transactions.
Don’t try to swing everything with two different agents – it’ll only complicate things. Instead, it’s better to work with one agent who’s handling both sides of the transaction. Your REALTOR will know exactly what needs to happen for everything to go smoothly.
#2. Make sure you get preapproved for your new mortgage.
It’s important that you get mortgage preapproval for a new home before you decide to work on buying and selling at the same time. You don’t want any surprises (like a mortgage denial) to throw a wrench in your plans.
Related: Why you need mortgage preapproval
#3. Have a backup plan for the money you need for your down payment.
Many people choose to use the cash they earn on the sale of an existing home to fund the down payment on a new home, and that’s fine – but what would happen if you were forced to accept an offer that’s lower than your list price? That happens more often than you think. You need to have a backup plan in place for your down payment, just in case.
#4. Be ready to compromise with buyers and sellers.
Buying and selling a home at the same time is stressful – but your sellers and buyers are stressed, too. Be flexible so you don’t alienate either party during your transaction (or worse, jeopardize either deal). If the seller needs an extra week to move out, for example, consider giving it to them; you don’t want anything to wreck the deal so you’re left at square one when it comes to house-hunting.
#5. Finalize the sale of your current home before you close on the new one.
In the best-case scenario, you’ll want to sell your current home two to three days before you close on your new one. That way, there’s time for bank transfers to go through and for lenders to finalize paperwork.
Pro tip: Avoid closing on a Friday – banks are closed on the weekends, which will drag out the finalization of your transaction.
Are You Buying a Home or Land for Sale in Lake City?
If you’re moving to Lake City, we can help you find the perfect place to live. Call us at 386-243-0124 to tell us what you want from your home and we will begin searching right away.
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