How To Buy And Sell A Home At The Same Time
Author:
Victoria ArajMar 4, 2024
•7-minute read
Whether you want to sell your house and buy a new one because of a job transfer, a better school district or your current home isn’t big enough for your growing family – moving can be stressful.
The stress only multiplies when you need to sell your current home at the same time.
We have steps you can follow to simplify the home buying process and make it an (almost) painless experience. But before we can detail the steps, let’s review some important factors to consider.
Should You Buy Or Sell First?
There are several schools of thought when deciding whether to buy or sell a house first.
If you’re selling a house with a mortgage, some people say you should sell your current home first to avoid getting stuck with two mortgages at the same time. Others say you should wait to sell later so you’re not between homes.
Buying Before Selling
Let’s look at some pros and cons of buying a new house before selling the home where you live.
Pros
The most obvious pro of buying a house before selling your current one is that you have a place to go after you sell your place. You won’t pay for moving expenses twice. And you won’t live out of boxes until you buy a new home.
It’s best to avoid the potential frustration of scrambling to find a short-term rental, especially if you also need to manage pets, kids or heavy furniture like a grand piano. And many places don’t allow month-to-month rentals for new tenants, so you may end up paying for several months of rent even if you only need to stay for 1 month.
Cons
Not selling your house before you buy your next one could leave you on the hook for two mortgage payments at the same time. Homeowners need to either plan how to pay for two mortgages at once or make a plan to sell their house fast. Homeowners may struggle to afford two mortgages and other expenses, especially if it takes more time than estimated to sell the home.
Selling Before Buying
Now let’s look at the pros and cons of selling your current home before buying a new one.
Pros
You won’t be responsible for paying two mortgages at once when you sell your home before buying a new one.Selling first may help you feel less rushed about deciding on your new home, especially if you’ve locked in where you’re going to stay after the closing date.
Cons
When you sell a home before buying one, you risk not finding a new one that fits your lifestyle and budget. Some homeowners only realize after selling their home that they may have been better off staying put and remodeling.