Selling Your House When Buying A New One

Selling your house when buying a new one doesn’t always work out the way you want it to.

Sometimes you sell it too fast and you’re temporarily homeless for some time..

And sometimes you can’t sell it until long after you buy your new house.

So how do you time it just right?

Well there is no foolproof, scientific answer. Sometimes it’s just the way things go.

But there are ways to increase your chances of selling your house at the right time.

Keep scrolling down to see the ways of selling your house when buying a new one.

Selling Your House When Buying A New One - Infographic

First Make A Decision

Finding a house when you’re living in an apartment is ideal. The task becomes trickier when you own a home already. That’s why you have to make a decision. Realize and accept that the situation is tough.

As you’ll soon learn, there’s no right or wrong approach you can take.

Having to buy a new home while you own one gives you two basic options. That’s why you can’t waste energy or stress yourself about which is best. This is a personal decision. But we can help you no matter which direction you take. There are ways to optimize your success on any path. You just have to commit to one.

Your largest concern is to not get stuck paying two mortgages. Here are a few things you can do.

Preparation

Consider preparing your old home for selling. Even if you buy before moving out. By the time you move out, make sure you don’t have to return.

The goal is to transition as smooth as possible. The task from either end requires as many “ducks in a row” as possible.

Buying a home before moving out also requires the right finances. Find out if owning two homes is even possible for you. Six to nine months is a good example of how long you should be able to live. You should have that much before deciding on owning another mortgage.

Now Analyze the Markets

Find out what type of market you have before taking any committed steps. Know where you would like to be and how much you would like to sell your existing house for. What prices ranges are important for your new house? If the new home didn’t have a white picket fence, would it matter?

Analyzing both markets, where you live and are to deciding to move, is about getting into the game. You have ideas and preferences, but housing markets won’t always favor you. Just because you decided to sell today doesn’t mean the iron is hot and ready. Be sure to do your homework.

Schedule With Care

This is where you take into consideration various factors you can’t control. Your best asset is to manage your schedule with care. Your timing, like most everyone else, won’t be just right. But you spend more money and time if you haven’t narrowed down your actions with a plan.

Scheduling requires you to know how much you can spend without a home or with two mortgages respectively. It also requires you to try to time the selling of your house to at least fall within the same week as your buying of another.

Schedule it. This is more personal resources and art than science.

Reach Out to Family

Would family be a financial option should you need a place after selling your home? A simple loan from family can go a long way to enabling you to move out and still manage expenses. This is even if you start living in your new home instead of on someone’s couch.

When people hold two mortgages, banks are less likely to give them more options for cash. Which means, you need to find financial help. Family can be a great option for this. They can also provide rooming for you until you find the home of your dreams.

Selling Before Buying

If you consider selling before buying, you’ll have more advantages than if buying first. The only issue is that you take on more risks if not prepared. The pros overshadow the cons though. The major obstacle is finding a substitute to live at. Until you find your home.

Here are some advantages of selling first:

  • You put money in the bank
  • It better manages selling of your own property with no need to rush
  • You can encourage a better price when you’re ready to buy
  • You better understand spending limits you have
  • You can also afford to wait

Buying Before Selling

Buying before selling gives you the most security. You’ll have to deal with timing more, but you’re never out of a home. If you buy first, you get the advantage of moving in fast. 

There is also an option for contingency clauses. These are rare propositions in real estate. The agreement is contingent on selling your existing home. The potential homeowner agrees to wait for you to buy. Only until you sell your home.

Be Ready to Adjust to the Others

There are many variables at play. Timing is important, but one reason it’s never exact is dependent on other people. Homeowners have to deal with options and tough decisions. Buying EXACTLY when you want likely won’t happen.

Take this into account when organizing your schedule and time frames.

Leave a Comment