Moving to a new home? Find out how to buy and sell a house at the same time – without getting overwhelmed.
All sellers I work with feel stressed and challenged over transacting two significant transactions simultaneously. There are steps you can take to feel more in control, and options to help you manage your timelines. I don’t usually recommend closing both the sale and the purchase on the same day. For this to go smoothly, you need to count on perfection from all parties in all transactions.
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Take the Stress Out of Buying and Selling
In my experience, it’s better to plan for the worst-case scenario and hope for the best. I usually recommend a small bridge loan of at least a couple of days to stagger closings, so if something is delayed for any reason, you have a cushion to work with. I have clients who have opted not to do this, and it has worked out; however, there is noticeable anxiety associated with the decision, which is a trade-off.
Create a Plan
Let’s have a conversation about your goals and objectives, and where you want to go, which is a great starting point. I need to learn about what’s important to you.
Establish Your Current Home’s Market Value
Determine how much your home is worth, the way it sits, in today’s market.
Boost Your Home’s Value
We have a meeting, not only to provide an opinion of value, but also to suggest what you should do to prepare your home for the market and position it to obtain the maximum price. I recommend making improvements only if they increase value.
Pick a Timeline
We will map out the ideal timeline for you to move and be in your new home. Best practice is to look at the finish line and work back from there.
Create a Schedule
We will itemize all the tasks getting done, when they are getting done, and who is responsible for each task. This will give you a roadmap from inception to go-to-market.
Execute the Plan
We get to work right away because it typically takes longer to complete everything than you expect. I like to use the 6 P’s: Prior Proper Planning Prevents Poor Performance. This is the beginning of your successful outcome.
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When to Sell First
- You need to know exactly how much money you can spend on your next home.
- Have a home that might take longer to sell (buyer’s market).
- Aren’t willing to carry two mortgages, or you can’t qualify for bridge financing.
- Have other housing options available, such as rental or staying with family, so you can be patient with your next home purchase, and not worry about matching closing dates.
Selling first eliminates the unknown. You know precisely what you’re working with and the timeline.
The Middle-Ground Strategy: Long Closing
I recently assisted a retired couple who were risk-averse but looking to buy a very specific property. We sold their property for a great price with a 90-day closing. Then we became buyers in a buyers’ market and got a great deal on our purchase.
This strategy worked to perfection. However, they were willing to rent between locations if necessary as Plan B. This provided them with leverage and peace of mind.
Select Target Areas
We will determine areas you want to consider moving to and what your ideal home looks like.
Determine Your Budget
We will base the budget on the market evaluation of your current home.
Tour Properties
This is the educational step. I suggest you see what your budget gets you. It’s not unusual for a buyer to see something and want to jump on it. That’s why it’s important to have the current house ready to sell.
Examine Inventory Levels
You must know the inventory, so you feel confident selling first, and know there are enough buying options available to you.
Decide if You Want to List or Buy First
There’s no one-size-fits-all answer. A great question to ask yourself is, what’s going to be harder, selling or buying? If it’s a tight market and your budget is constrained, sell first or have a contingency plan to rent or stay with family. This will avoid feeling pressure to buy something you don’t necessarily want or love
Should You Use the Same Realtor for Buying and Selling?
Most of the time, this makes sense.
Using an experienced realtor for both transactions will typically lead to a smoother, more coordinated move.
- Everything is connected. Your deposit, financing, and closing dates must all be coordinated. Having the same realtor on both ends reduces the risk of missed communication.
- Your realtor knows your whole picture. When I help clients on both ends, I understand their goals, non-negotiables, stress points, and preferred timelines—making for a better strategy with fewer hiccups.
- You get consistent guidance. What I learn from selling your home helps me structure the offer on your purchase.
- You avoid conflicting advice. Agents with differing philosophies may cause too much chaos.
When Do I Advise Working with Separate Agents?
Moving to a New Area
If you’re relocating to a completely different geographic market, and the agent doesn’t have expertise in it. I suggest you have the agent you’re working with refer you to another agent.
Good agents will have great referral partners in other markets. Have them be a part of the hiring process. Not to interfere, but to help you find the right realtor who fits your needs. Think of it as a matchmaker. They will be compensated with a referral fee, which enables you to find the best fit.
If You Want to Fire Your Agent
Don’t feel obligated to work with an agent you are dissatisfied with. When you sign a listing agreement or a buyer representation agreement, do one at a time. This way, if you aren’t happy with the service, either when buying or selling, you can walk away and find the right agent for your next transaction. Learn from the experience and know precisely what you want from the following realtor.
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What You Need to Know About Selling a House with a Mortgage?
At closing, your lawyer will use the funds the buyer provided to pay off your existing mortgage. If you are terminating a mortgage agreement and are subject to a penalty, your legal representative will facilitate payment of the outstanding mortgage balance, including any applicable penalties. A couple of things to be aware of before listing your home when it comes to mortgages:
Know Your Mortgage Penalty
Depending on the type of mortgage or how much time is left in your mortgage cycle, it will determine your mortgage penalty. Most assume the penalty is three months’ interest.
This is common, but not always the case. There’s also something called an IRD (interest rate differential), and these can be very costly, depending on the type of mortgage and how much time is left in your mortgage cycle. Pro Tip- know your numbers and reduce stress.
Is Your Mortgage Portable?
Understanding this information could save you thousands of dollars. Always confirm with your lender before listing. This is an essential step in knowing your numbers.
How Much Equity Do You Have?
Understanding how much you owe on your mortgage, minus the costs associated with selling your house (e.g., lawyer fees, realtor fees, HELOC, mortgage penalties), is how much equity you have for your next purchase.
If you’re considering your next chapter and would like to speak with a professional who represents both buyers and sellers, feel free to contact me.
Ready to buy or sell? I can help! Reach out to 647.283.2127 or email stuart@stuartnodell.com to start a conversation.
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