make your transition seamless: how to buy and sell a home at the same time
Here’s How to Navigate Buying and Selling Simultaneously with Ease and Confidence.
Whether you should buy or sell first depends on the market, your personal financial position, and your tolerance for emotional uncertainty.
If you sell first, you will know exactly how much you have to spend on your next home, and you can be more certain about your financing. However, you may not find your dream home before the new owners take possession of your old home. This is especially true in fast-moving markets. Do you have a plan in place?
If you buy first, you’ll be able to focus on finding the home that’s perfect for you, but can you handle the financial implications of not selling your current home in time? If you do sell, but the closing dates don’t match, will your financial institution offer bridge financing? Can you afford it?
I’d be more than happy to discuss the various scenarios with you, but would stress that the very first thing to do—as always—is to sit down with your financial representative and be absolutely certain of your financial position.
how to buy and sell at the same time:
Step 1: Get Pre-Approved for Your Next Home
Before you start shopping, speak with a trusted mortgage professional to:
• Understand how much you can afford.
• Explore options for bridging the gap between selling and buying (e.g., bridge loans, home equity loans). These tools can help you make an offer without waiting for your current home to sell.
• Learn which conditions you will need to have in place if you need to buy before your current home sells. When making an offer, you may need to include a condition that requires your purchase to be dependent upon the sale of your current home.
Step 2: Meet with Your REALTOR® to Develop a Strategy
Simultaneously buying and selling can feel overwhelming, but with the right plan, it’s entirely manageable. Begin by discussing:
• Why You’re Planning to Move: What are you priorities? Are you looking to buy in a specific neighbourhood? To have your child attend a specific school? To be close to family? Is timing more important than price?
• Your Ideal Timeline: Do you need to sell first to free up equity, or do you have the financial flexibility to purchase before selling?
• Financial Considerations: Understand your budget and how the sale of your current home impacts your purchasing power.
• Market Conditions: Is it a buyer’s market, a seller’s market, or somewhere in between? This will influence your strategy. A seller’s market may allow you to sell quickly but make it harder to find your next home. In a buyer’s market, you may find your dream home easily but need more time to sell your current property.
• Possession Dates: Work with your agent to align the closing dates of your sale and purchase as closely as possible.
• Conditions: Work with your agent and your financial professional to determine which conditions protect you best.
Step 3: Prepare Your Current Home for Sale
It is especially important to be able to bring your current home to market quickly—usually within a day or two of an accepted offer to purchase. It’s best to prepare beforehand. To attract buyers and maximize your home’s value:
• Declutter and Stage: Create a clean, inviting space that helps potential buyers envision themselves living there. Remove excess items, personal belongings, and unnecessary furniture to create an open, inviting space. Consider donating or storing items.
• Complete Repairs: Fix any noticeable issues that could deter buyers. Address minor repairs like leaky faucets, chipped paint, or squeaky doors. These small improvements make a big difference in how buyers perceive your home.
• Deep Clean: Ensure your home sparkles from top to bottom—clean carpets, windows, and all surfaces. First impressions matter!
• Take Professional Photos: High-quality photos are key to attracting online buyers. Your agent can connect you with a skilled real estate photographer to capture your home at its best.
• Price Strategically: Work with your agent to set a price that’s competitive and reflects current market trends.
Step 4: Stay Organized
Buying and selling at the same time involves a lot of moving parts. Keep everything on track by:
• Using a checklist to track deadlines, paperwork, and tasks.
• Staying in close communication with your real estate agent, lender, and any other professionals involved in the process.
• Being flexible—sometimes things don’t go exactly as planned, but with the right team, you’ll be able to adapt.
Step 5: Lean on Your Real Estate Professional
Working with an experienced real estate agent is crucial when buying and selling simultaneously. Your agent will:
• Help you price and market your current home effectively.
• Guide you through negotiations and contingencies.
• Coordinate timelines to make the process as seamless as possible.
• Provide advice and reassurance throughout the process.
FAQs About Buying and Selling Simultaneously
Q: What if my home doesn’t sell quickly?
A: If your home doesn’t sell as quickly as expected, consider reducing the price, offering incentives, or improving the staging. Your agent will guide you through the best options.
Q: How do I avoid owning two homes at once?
A: Selling first or using conditions in your purchase offer can help. Additionally, bridge loans can provide short-term financial flexibility.
Q: How can I manage the stress of coordinating both transactions?
A: A professional real estate agent will handle much of the coordination for you. Focus on staying organized and flexible.
Ready to Get Started?
Buying and selling a home simultaneously is a big undertaking, but it doesn’t have to be overwhelming. With the right strategy, resources, and support, you can move through this process with ease and excitement.
Let’s work together to make your transition seamless and successful!