How To Sell And Buy A Home At The Same Time

Buying a new home while selling your old one can be a challenging task, and if you plan to do both, the process becomes even more complicated. It is not only the logistics and coordination that make the process difficult, but also the risk factor involved in closing both deals within the deadline.

Regardless of the difficulties faced during the process, there is no right or wrong method set for selling a home & buying a new home at the same time. It all depends on how much money you want to spend and how much risk you are willing to take. It also depends on whether you are in a seller’s or a buyer’s market.

Here are a few suggestions to assist you in coping with the process:

1. Rent out your old property

If you intend to buy a home first, consider leasing out your old property to a potential tenant. This will enable you to generate income to maintain the home and pay the mortgage while you look for a permanent buyer. If, on the other hand, you decide to sell your old home first, you could try to ask the people who are buying it to rent it back to you for a few days. This is known as a “rent-back” contingency. Although not everyone will agree, it will give you time to buy and move to a new home. On the plus side, you won’t have any contingencies on your new home purchase because it’s already sold.

2. Consider a contingency clause

If you want to be safe, include a contingency clause in your offer to purchase a new home. This clause states that your offer to sell your previous home is pending. If your home does not sell within the specified timeframe, you can walk away from the transaction unscathed. Though not every seller will agree to these terms, if the market is slow, they may give it some thought.

3. Bridge loans

Bridge loans are used to bridge the gap between short-term cash needs and long-term loans. These loans are typically for a period of 12 months. They can be a good solution, but because they are designed to be short-term, interest rates are typically higher. For more clarity, consult with your financial advisor to see if this option is feasible in your situation.

4. Contact Homexchange

Homexchange, a property exchange platform founded by real estate industry professionals, provides innovative and hassle-free ways to sell your old home and buy a new one. If you want to sell your old property, simply contact Homexchange, have their team of experts inspect it, and provide you with a competitive offer.

Meanwhile, you can select your new home from the projects available on their website. You will get an offer in just 5 days after the home inspection and will have 30 days to accept the given quote. If you accept the offer, you put the money toward the down payment on your new home. Because both of your requirements are met, the entire buying and selling process of your home becomes more efficient, seamless, and convenient.