To buy and sell houses at the same time can be a very tricky thing to do. If you are very wealthy and have the funds to buy a house without needing money to sell yours first, then there are no problems. But not everyone is born equal. Buying and selling at the same time is problematic not because of logistics and coordination, it is also difficult because someone is taking a risk, and that someone is the person selling you the house.
Buying in a Seller’s Market
A seller’s market is exactly what the term means. In a seller’s market, inventory is low because there are fewer homes being sold. Fewer homes mean fewer options and that means that there are not enough homes for every buyer to buy. This is a bad thing because you might not find a house that suits you and your needs.
When buying and selling houses in a seller’s market, it is very common to compete with other buyers on the same house. If everyone meets the asking offer, the seller will most likely rank the buyers according to desirability. And if you are a buyer who also sells, and you haven’t sold your house first to fund buying the new, you will be most likely ranked last. In the case that you have sold your house before that, you still are fighting an uphill battle if the money is in escrow waiting to close. Because at that point, your house is not on the market at all, and that makes the seller think you are not serious enough, ending with still being at dead last.
Buying a home first
Buying your new house first before selling the old one can be a very tricky thing. In order to qualify for owning two homes, it’s preferred to show the seller that you have payment for both homes for 6 months in the bank. You will also need funds for a down payment and all the closing costs. You can borrow money, or tap a savings account to be at little risk for repayment. This applies only if you are in a seller’s market because you still need to sell your house.
Renting Back After Selling First
There is an option in a seller’s market that you can ask your buyer to let you rent back the house for 30 to 60 days after closing. If you haven’t found a house first but is eager to sell, then this option would be perfect. You have time to find the perfect home and also face rejections a few times. You don’t have any money problems because your house is already sold.
No Contingency to Sell
A contingency to sell is a contract that the seller accepts the buyers offer to purchase their home, but they agree that the purchase is conditional upon the sale of the buyers existing home. With this you (the buyer) set a date with a seller, and agree that you will sell your existing house by that date, it not then you get your earnest money back, and the deal is off.
Selling First, Buying Second
This is probably the least stressful option because you will know exactly how much money you have from selling the home. The only negative side is that you will need to move out of your house when the deal closes and probably would need to rent a new place or move back home while you buy a new house. To speed up the process, you should consider hiring professionals like These Guys Buy that will help you out with quick sales.
You are probably wondering how to sell your house fast so that you can proceed with the purchase of a new home. Even though the professionals will take care of everything you still want to take your time with the sale and make sure you have everything ready.
If you find a seller who is willing to take a contingent offer and wait for your hose to sell, then choose that option because it the best option you have, but in a seller’s market, we doubt that could happen.