Timing Is Everything If You're A Buyer And A Seller

Forty percent of homebuyers last year were first-time buyers. And the rest? Many of them bought and sold a home at the same time, which can be a very tricky process. If you’re considering this delicate dance of buying and selling within the same timeframe, timing is critical. In order to move seamlessly from your old house to your new house, you’ll need to plan carefully and be prepared.

Get all of your ducks in a row. The first step in buying and selling is to bring in a real estate agent to help you sell your home and an agent to help you find a home to purchase. Bringing in an agent on each side of the equation will be an immense help to you as they’ll be able to analyze the market conditions in the area you’re selling in and in the area you’re buying in. Knowing and understanding Average Days on the Market—in both areas—is important in pinpointing the timing of your home sale and home purchase.

Consider all of your options. Along with your real estate agents, you’ll also want to add a lender or mortgage broker to your team of experts. A lender or broker can guide you through all of your financing and mortgage options—especially if you’ve found the home you want to buy before your current home has sold. Will you need to carry two mortgages for a short period of time? Or will you need to get a bridge loan, which is a short-term loan that allows you to buy without having to settle on your current home? These are questions your lender or broker can help you answer.

Be ready to jump when the time is right. Ideally, you want a buyer to make a contract offer on your old home at the same time you make a contract offer on your new home. However, it’s more likely that you’ll get a contract offer before you make an offer—or, in some case, before you’ve even found a home to buy. The closer you get to selling, the closer you want to be to buying. If at all possible, lock in your interest rate, research all of your new home possibilities and be ready to pounce when the time is right.

Unfortunately, luck may play a part in buying and selling at the same time. However, if you take an active role in the buying process and in the selling process—along with your real estate agent and mortgage professional—you’ll be much more likely to avoid potential problems. ∆