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Selling a house is already a big task and if you add buying a house to that equation, it would seem overwhelming to an average person. Ideally, you would want to be able to sell your house, get the built-up equity for your down payment, and then look for your next home.
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Ultimate Guide on Selling and Buying A Home at the Same Time Selling a house is already a big task and if you add buying a house to that equation, it would seem overwhelming to an average person. Ideally, you would want to be able to sell your house, get the built-up equity for your down payment, and then look for your next home. But more often than not, you’ll find yourself selling and buying a home at the same time. But don’t worry, we got you covered. In this article, we’ll discuss challenges and excellent tips on selling and buying a home to avoid making mistakes that can cost you time and money.
Ultimate Guide on Selling and Buying A Home at the Same Time Selling and buying a house at the same time can be done even if it’s your first time to sell a home. However, it comes with several challenges that you should know of. Funding Difficulties You are likely going to use the proceeds from selling your home to pay off the mortgage and then use any remaining money for down payment on your next home. But if you are selling and buying a home at the same time, you might have difficulty coming up with the money for a down payment unless you have a lot of cash on hand.
Ultimate Guide on Selling and Buying A Home at the Same Time Available options for you (if you don’t have enough cash on hand) are to cash out refinance on your current property, get a home equity line of credit, or you can also sell your home to a cash home buyer where closing can be done in just 10 days. Selling to a cash buyer expedites the process and you’ll get the cash to buy your new home in no time. Complicated Process There are a lot of things involved in both the selling and the buying process of buying a home. It would be less complicated if you can use the same agent to both sell your current home and buy your next one. But this is usually only possible if you are moving within the same city. If you’re looking for a house in another area, you’d need another real estate agent who is knowledgeable of the area you’re moving into. In this case, you have to work with two real estate agents at the same time.
Ultimate Guide on Selling and Buying A Home at the Same Time You would want to work with a good real estate agent when selling a house and buying a new one to save yourself from headaches of dealing with complicated logistics such as negotiations with the buyer and the seller, timing the purchase and the sale, to mention a few. Negative Domino Effect There are times when both the buyer and the seller are buying and selling at the same time and since both parties involved are moving with their own set of timeframe, contingencies and contracts, there’s a higher probability of the deal falling apart.
Ultimate Guide on Selling and Buying A Home at the Same Time Risk of getting ousted by a non-contingent offer You may want to buy a house contingent on selling yours to reduce risk which means you’ll buy the house only if you get to sell your current home. It will protect you from taking on two mortgages. A contingency clause will be included to the terms of the home offer. While contingency gives you protection, it also puts you at risk of having your offer declined in favor of a non-contingent offer. While you can choose to remove your contingency in this scenario, it is risky and not financially feasible for you.
