It’s always felt challenging to buy and sell a home simultaneously. There are so many decisions to be made and logistics to think out. Some of these are only exacerbated in a market that is moving as fast as ours is today.
Unless you are planning to pay in cash, and have a lot of it on hand, you’ll need to come up with the money for a down payment while the equity is still tied up in your current home.
Questions to consider:
- Can you afford to pay both mortgages?
- How long of a financial runway do you have before you’ll be unable to make both payments?
- Do you have enough assets to use as a down payment?
- How much do you have available for your down payment after accounting for paying both mortgages for the number of months in your worst-case scenario?
Additionally, with an FHA or VA loan, in general, you are only permitted to have one mortgage loan at a time, so you likely wouldn’t be able to secure a mortgage on another property before selling.
Logistics to Consider
There are many logistics to think about including the timing the purchase and the sale, negotiating closing and possession, as well as coordinating packing, moving, and organizing the new house. There is a reason moving is listed as one of life’s top stressors.
In a traditionally paced market, many homeowners make an offer contingent on the sale of their current home. Unfortunately, a hot market doesn’t afford this opportunity, and there is always the possibility that even when a contingent offer is made, it can be usurped in favor of a non-contingent offer.
Dealing with the outcome of selling without a purchase may result in even more logistics to coordinate such as storage facilities or short-term rentals to bridge the gap
An Easier Way to Buy and Sell a Home
The good news? You have options! First, talk to an expert – a real estate agent familiar with the area where you are looking to live is going to be able to give you realistic scenarios and timelines that will help you manage your expectations and planning.
CENTURY 21 Scheetz takes the stress out of the situation and uncomplicates the process with our Instant Offers feature. Your real estate agent will guide through the entire process of understanding all your options so you can make the best decision for your specific situation. Options can include accepting an instant cash offer on your home so you can move before you sell, selling your home now and renting at a fair-market price until you find your dream home, or a traditional sales option. Learn more about the speed, predictability, and convenience with Instant Offers today and take the stress out of buying and selling your home!