There are a few ways you can go about buying and selling homes at the same time. You can buy first and then sell, sell first and then buy, or you can conduct a concurrent/simultaneous close of escrow.
Before you try any of these options, there are some things you need to know. Find out exactly what you can afford in the buying process—getting pre-qualified with a lender is a great first step. You should also determine your home’s value. By doing this, you’ll know how much equity you have and can figure out what you can afford as a down payment.
Here’s how the three strategies we listed earlier work:
- Buying first. By doing this, you can enjoy a pressure-free search without having to worry about selling your current home. You also won’t need interim housing and can move without any rush. However, you may be having to pay two mortgages temporarily and you won’t know how much equity you have for the down payment on your new home. We’re good at getting a close estimate, but the exact amount is unknown.
- Selling first. With this option, you’ll know the equity you have for a new house and you won’t have to pay two mortgages at the same time. You may need interim housing for when you’re without a home. We can even negotiate a leaseback with the buyer of your current home.
- Buying and selling simultaneously. This is doable, but it takes a good amount of planning and flexibility. For example, home inspections and appraisals must be done as soon as possible to get the ball rolling. Thankfully, If your buyer isn’t pressured to move in right away, you’re less pressured to find a home immediately. Or, the buyer can close escrow and allow you to rent the home in the meantime.
There are pros and cons to each, but we can help you find the best option for your situation. If you’d like some guidance, have questions, or need information, feel free to reach out to us. We look forward to hearing from you.