Afraid of the juggling act that comes with selling your home and moving into a new one? You’re not alone! Here are 3 ways to buy and sell a home simultaneously.
3 Ways to Buy and Sell a Home Simultaneously
#1: Closing Contingent
This is probably the most common approach when you need to buy and sell a home simultaneously. You make an offer on your new home, but that offer is contingent on someone buying your current home. In other words, if your buyer backs out, you can back out of the deal on the new home too.
The downside? It shifts all the risk to the seller of the home you’re trying to buy—and let’s be honest, most sellers aren’t thrilled about that, especially in a competitive market where they likely have other offers.
#2: Own Both Homes (Temporarily)
If you can qualify for two mortgages, this might be a good option for buying and selling a home simultaneously. You buy your new home first and wait to sell or move out of your current home until you’re ready.
This works well if your new home needs renovations before you move in or if you’re planning to turn your current home into a rental property.
The catch? You’ll need to:
- Get approved for a second mortgage (not always easy).
- Cover two mortgage payments for a while.
- Find a way to fund the down payment on your new home without using the proceeds from your current home’s sale.
#3: Rent Your Current Home After Selling It
This one’s a little less common but can make it easier to buy and sell a home simultaneously. When you sell your current home, you can negotiate a rent-back agreement with the buyer, which lets you stay in the home as a tenant for a little while.
This gives you the cash from your sale and the breathing room to shop for your new home without rushing to move.
The challenge? Buyers aren’t always keen on delaying their move-in date or taking on the risks of renting to the seller.
More Questions?
Navigating the process to buy and sell a home simultaneously can be complicated, especially if there are multiple families involved in a chain of contingent sales (picture a row of dominoes!). It takes skill and experience to keep everything moving smoothly. That’s where a great real estate agent comes in—to help you strategize and make it all work.
Got questions about how to buy and sell a home simultaneously? Let’s chat—I’m here to help! Fill out the information below, or check out the article on Hiring A Real Estate Agent in Pensacola.
