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Feb 22, 2023

How to Buy and Sell a Home at the Same Time

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Buying a home can be complicated. Buying a new home when you already have a home adds to the complexity — and the stress. A lot happens at once, and if you miss something, it could be hazardous to a happy outcome. To help navigate this juggling act and set the stage for a smoother process from the start, this guide will help you understand potential challenges and provide tips to close on both deals.

Explore Home Prices

Work with your real estate agent to research area home prices and hire a professional appraiser to provide a fair market value of your property. Their expertise can come in handy for setting an accurate listing price that strikes a balance between making a profit and selling in a timely manner. Ask your real estate agent to examine home prices in the area where you hope to move, as well.
Next, get your finances in order to help determine your down payment amount. If you plan to use proceeds from the sale of your current home, play it safe by using the low side of the sales price. This will help you set a realistic shopping budget for your new home.

Evaluate the Local Housing Market

Your budget, as well as your buying and selling strategies, will also be affected by the current state of the housing market . Not only does the market influence home prices, it can also impact the length of closing on a sale or purchase.
In a buyers’ market there are more houses for sale than people actively looking to purchase a home. With less competition in the market, buyers can generally consider to request such things as an extended closing or include other contingencies with the offer,
In a sellers’ market there are more buyers in the housing market than homes for sale. Often, sellers can take advantage of this housing scarcity and go with a more ambitious asking price. It’s also not uncommon for houses to have multiple offers. 
Currently, most of the country is in a seller's market. These tips can help you face the challenges you may experience as a homebuyer right now:

  • Shop for multiple homes, in case you don’t get your first pick.
  • Limit the number of contingencies, while balancing the need to protect your interests.
  • Get prequalified for a home loan to show you are ready.

Selling Before Buying or Buying Before Selling?

When it comes to the question of whether you should buy or sell first, there is no right answer. Each option has advantages and challenges.
  • Selling first you may need temporary lodging and storage. Or, you can ask the buyer to include a rent-back clause in the sales contract, literally allowing you to pay rent (or lower the sales price) and stay in the home for 60 to 90 days after closing.
  • Buying first you won’t have to worry about a place to stay, but you may face financial challenges. For instance, you can’t bolster your down payment with proceeds from your home's sale, and you may have to make loan payments on both your old and new homes until the old one sells.

Rely on Partners You Can Trust

Buying and selling houses at once may not always be easy, but it’s doable. With a savvy real estate agent and your friends at TruStone Home Mortgage to provide a stress-free borrowing journey, you can have the expert guidance needed to close on both deals.
Ready to get started? Let’s talk. Visit with your local TruStone Home Mortgage expert at a location near or you call us at (844) 346-4483 today.
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