{"id":254,"date":"2015-08-29T19:57:38","date_gmt":"2015-08-29T19:57:38","guid":{"rendered":"https:\/\/clarksvilletnrealestateforsale.com\/?p=254"},"modified":"2015-08-29T19:57:38","modified_gmt":"2015-08-29T19:57:38","slug":"how-to-buy-and-sell-a-home-at-the-same-time-without-losing-your-mind","status":"publish","type":"post","link":"https:\/\/clarksvilletnrealestateforsale.com\/?p=254","title":{"rendered":"How to Buy and Sell a Home at the Same Time\u2014Without Losing Your Mind"},"content":{"rendered":"
\n
\n
<\/i>Home<\/a> > Advice<\/a> > Buy<\/a><\/div>\n
<\/div>\n<\/div>\n<\/div>\n
\n
\n
BUY<\/a><\/span><\/div>\n<\/header>\n
\n
\n

How to Buy and Sell a Home at the Same Time\u2014Without Losing Your Mind<\/h1>\n<\/div>\n
\n
\n
\n
\n

By<\/span>
\nJamie Wiebe<\/a><\/i><\/span><\/p>\n

<\/div>\n<\/div>\n
\n
\n
\"buy-and-sell-split\"<\/a>
\n

WB Digital\/Getty Images<\/p>\n<\/figcaption><\/figure>\n<\/div>\n

Ah, to be a first-time home buyer again: How easy it was to\u00a0buy a home when you weren\u2019t carrying another<\/em> mortgage on your back!<\/p>\n

If you\u2019re looking to graduate from first-timer to repeat<\/em>\u00a0buyer, you know things are about to get much trickier. Unless you\u2019re a bona fide\u00a0house collector, you\u2019ll have to sell your home in order to buy anew\u2014adding a whole separate layer of anxiety to what you already know is a stressful home-buying process.<\/p>\n

<\/div>\n

In an ideal world, you\u2019d\u00a0buy a\u00a0new home, move, and then, and when all the dust settles, deal with the turmoil of selling. But for most people, that\u2019s totally unrealistic. Not only does it\u00a0cost significantly more, since you\u2019ll be paying two mortgages, but sellers might be quick to judge if you\u2019re holding on to your current home.<\/p>\n

Drew<\/strong> Snyder<\/strong><\/a>, a Realtor\u00ae with\u00a0Snyder Sutton Real Estate inTopanga, CA,<\/a>\u00a0says\u00a0one of his clients had difficulty getting\u00a0sellers to \u201ctake them seriously unless the house was on the market or in escrow. As soon as we put it on [the market], they were considered as serious buyers.\u201d<\/p>\n

You can do this! If selling and buying simultaneously is the only way to go, here\u2019s what you need to know to make sure both processes go as smoothly as possible.<\/p>\n

Know the market first<\/h2>\n

Before you\u00a0start seriously searching for a new home\u2014or put your current home on the market\u2014make sure you have a solid understanding\u00a0of the housing market in your area (and the area where you\u2019re planning to buy).\u00a0Is the market weighted toward buyers or sellers?<\/p>\n

Only then will you be\u00a0able to fully strategize. As is so often the case,\u00a0the best plan of action may differ depending on exactly who has the power.<\/p>\n

That doesn\u2019t mean to find one\u00a0house you like and call it a day: Find multiple\u00a0suitable options. That way, you\u2019re\u00a0less likely to find yourself in trouble if your purchase falls through\u2014your\u00a0newly sold home won\u2019t leave you stranded.<\/p>\n

Similarly, make sure\u00a0to hire an appraiser and price your old home fairly. Now is decidedly not<\/em>\u00a0the time for delusions of grandeur: Two extra months on the market because you couldn\u2019t humble yourself to lower the price means two\u00a0months you\u2019ll be paying double mortgages. Two very long months\u2026<\/p>\n

Plan your schedule carefully\u2026<\/h2>\n

Should you buy first, then sell\u2014or\u00a0vice versa? Both have their risks and rewards. Selling first makes\u00a0getting a mortgage easier, but it also means you\u2019ll need to find a temporary place to live. Buying first\u00a0means\u00a0moving will be easier, but it also skews your debt-to-income ratio,\u00a0making\u00a0it harder to\u00a0qualify for a new mortgage\u2014not to mention the difficulty of juggling two monthly\u00a0house payments.<\/p>\n

\u201cIt\u2019s walking a tightrope,\u201d says Gary DiMauro<\/strong><\/a>, a Realtor in New York\u2019s Hudson Valley. And he\u2019s not just talking about scheduling:\u00a0Your finances will be on the highwire, too. When\u00a0determining whether you should sell or buy first,\u00a0think beyond \u201cHow\u00a0can I make\u00a0the move as easy as possible?\u201d Instead ask: \u201cCan I handle two mortgages?\u00a0What if my home\u00a0sells for less than its listing?\u201d<\/p>\n

Whichever option you choose, make sure you\u2019re prepared to accept the consequences: having to store your stuff and rent\u00a0temporarily, or undergoing the financial burdens of dual mortgages.<\/p>\n

\u2026 but don\u2019t rely on timing<\/h2>\n

When buying and selling a home simultaneously, \u201cthere are so many external circumstances,\u201d says DiMauro. \u201cI\u2019ve yet to see it really work smoothly and efficiently.\u201d<\/p>\n

Remember: You\u2019re not the only party\u00a0in this equation. For every\u00a0seller there\u2019s a buyer, for every buyer a seller.\u00a0While things\u00a0might appear to be working smoothly when viewing your master plan from above, that doesn\u2019t take into account the variabilities of other people.\u00a0Closings are rife with delays. Your buyers might have difficulty securing their mortgage; your\u00a0home inspector may bring up\u00a0issues that need to be fixed before you can move in.<\/p>\n

\u201cYou\u2019re relying on the seller of the place that you\u2019re buying to be ready to move in concert with the buyer of your house,\u201d DiMauro says.<\/p>\n

So even if you\u2019ve planned to sell your home first and are\u00a0prepared to\u00a0rent while buying,\u00a0know that even the best-laid plans go awry\u2014and you might end up juggling both mortgages. Preparing yourself for this\u00a0(however remote) possibility ahead of time will\u00a0ensure a smooth transition.<\/p>\n

Know your financial solutions<\/h2>\n

For those who choose to sell first, the process is relatively straightforward other than the additional cost of a rental between homes. However, there is the option of a\u00a0rent-back agreement<\/a>, where you negotiate with the\u00a0lenders and buyers to be able to\u00a0remain in the property for a maximum of 60 to 90 days\u2014often in exchange for a lower selling price or rent paid to the buyers. This can relieve\u00a0some of the pressure of finding a new home, giving you additional time to house hunt.<\/p>\n

But if you\u2019re buying first,\u00a0talk to your Realtor about\u00a0ways to decrease your financial burden and risk.\u00a0Here are the two most popular options for buyers:<\/p>\n

Contract contingency:<\/strong>\u00a0Buyers can request that their new home purchase be dependent on the successful sale of their old home.\u00a0If you\u2019re looking in a competitive market, this may not be a good option; however, if the seller of your intended home has had difficulty attracting interest, this may be a good deal for all parties involved\u2014assuming you can convince them that your<\/em> home will sell quickly.<\/p>\n

Bridge loans: <\/strong>Bridge financing\u00a0allows you to own two homes simultaneously if you don\u2019t have deep pockets for a second down payment. This option is especially attractive if you\u2019d\u00a0planned to sell your home first and use the proceeds\u00a0to buy the second. It\u00a0functions as a short-term loan, intended to be\u00a0repaid upon the sale of your original house.<\/p>\n

Don\u2019t\u00a0let fear rush you<\/h2>\n

If\u00a0your home has\u00a0sold but you haven\u2019t found\u00a0a new place to live, don\u2019t let\u00a0anxiety push you toward a bad decision. DiMauro usually recommends that his clients pre-emptively plan on a short-term rental \u201cso they don\u2019t feel stressed or pushed into something that they would not normally be interested in,\u201d he says. \u201cThey shouldn\u2019t make a purchase because they felt like they were pressured from the time constraints.\u201d<\/p>\n

Found the perfect home right on schedule? That\u2019s great. But don\u2019t feel like you have to compromise on\u00a0things\u00a0that are important to you just because you\u00a0need<\/em> to find a home.\u00a0Conversely, don\u2019t accept a bid that you feel is too low just because\u00a0your finances are strained by two mortgages. If you have a temporary apartment set up, you\u2019re less likely to compromise.<\/p>\n

Certainly, selling and buying a house simultaneously will be stressful\u2014but carefully considering\u00a0and planning\u00a0for the risks and hurdles can mitigate\u00a0the\u00a0stress.<\/p>\n<\/div>\n<\/section>\n<\/article>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Home > Advice > Buy BUY How to Buy and Sell a Home at the Same Time\u2014Without Losing Your Mind By Jamie Wiebe 6:00 am ET August 28, 2015 WB Digital\/Getty Images Ah, to be a first-time home buyer again: How easy it was to\u00a0buy a home when you weren\u2019t carrying another mortgage on your … Continue reading How to Buy and Sell a Home at the Same Time\u2014Without Losing Your Mind<\/span> →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-254","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/clarksvilletnrealestateforsale.com\/index.php?rest_route=\/wp\/v2\/posts\/254","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/clarksvilletnrealestateforsale.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/clarksvilletnrealestateforsale.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/clarksvilletnrealestateforsale.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/clarksvilletnrealestateforsale.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=254"}],"version-history":[{"count":1,"href":"https:\/\/clarksvilletnrealestateforsale.com\/index.php?rest_route=\/wp\/v2\/posts\/254\/revisions"}],"predecessor-version":[{"id":255,"href":"https:\/\/clarksvilletnrealestateforsale.com\/index.php?rest_route=\/wp\/v2\/posts\/254\/revisions\/255"}],"wp:attachment":[{"href":"https:\/\/clarksvilletnrealestateforsale.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=254"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/clarksvilletnrealestateforsale.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=254"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/clarksvilletnrealestateforsale.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=254"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}