Are you thinking about selling your home? Do you want to downsize or maybe upsize?  Do you need the funds from the sale of your home to secure the next home? You may be considering that you have to buy and sell on the same day!  How is that even possible? Below discusses how to buy and sell at the same time.

Not that it is impossible or easy but buying and selling a home at the same time is doable just with some careful planning.  Usually in a same day close, someone is taking on the risk of something happening and usually it is the seller.  The risk factor also is different depending if it is a seller’s market or not. In a seller’s market, inventory is low and there may be multiple offers on a property and also contingent offers.  If the home is priced right and in the right conditions will have multiple offers to choose from.  If a seller is also a buyer, then there is some flexibility and negotiation needed when accepting an offer that will be most advantageous as that seller becomes a buyer!

Seller’s Market

In a seller’s market, there are some options that you may want to consider if you are thinking about buying and selling at the same time:  

• Buying a home first: if the funds are available, buying your next home first may be an option.  A lender would need to approve you for dual mortgages for short period of time till your home sells.  Or do you have cash available to purchase the next home outright?  Also be sure to budget closing costs as well.
• Lease back your home after it sells: selling your home first and then leasing it back for a month or two may be an option.  You can shop for your new home after your home sells and know that you have a time window to be flexible with closing.  This is a seller’s market, when buying a home you need to move fast when you see something you like.  If your buyer is flexible on move in, leasing back for a short period of time may be very viable but will need to be negotiated up from during the sale of your home.
• Sell first then buy-this may be the less desirable option for most.  It means moving twice, putting your things in storage and finding temporary housing.  If that is not a problem, then this may be the way to go financially.  You will know how much funds you have when your home sells, then you have the time to focus on buying your next home with the confidence of what you can afford financially.

Buyer’s Market

Let’s flip this around to a buyer’s market.  In a buyer’s market, there is plenty of inventory to choose from and the buyer has flexibility in making a contingent offer. In a buyer’s market, consider a longer closing.  It may allow some options to selling your home.  Another consideration may include renting your current home.  If you do not need the funds from the sale to purchase your next home, this may be a viable option.  

After weighing all your options, the decision is to have a concurrent closing date and buy and sell at the same time.  Here are some tips to ensure a smooth transition:

• Use the same title/escrow company.  This will ensure that there are no conflicts or delays with closing.
• Same closing date on both properties:  This makes moving day a little tricky.   Consider having the moving company store your belongings for a day or so.  
• Use a Realtor: Having a professional who has experience with concurrent closings is huge advantage for consumers.  They have the expertise to manage the contract negotiation and ensure your needs are met.  

Buying and selling at the same time is highly viable option when looking to transition to your next home.  Careful planning and an expert Realtor will help guide you along the way and can make this transition as smooth as possible.