It can be stressful to buy and sell a home at the same time. You fear that you’ll sell your home faster than you can find one.
Or worse, you end up with two mortgages as you found your new home faster than expected. If homeowners could do what they want, it’d be to move in their new home and then sell their old home after they’ve gotten settled. But it still presents the problem of being stuck with two mortgages. Here’s what you can do to ease the anxiety of buying and selling a home.
Study the Market
Before moving forward with hunting for a new home and putting yours on the market, understand the housing market in the areas where you’re buying and selling. Better yet, talk to your real estate agent. They can tell you whether the market leans in the favor of buyers or sellers.
A seller’s market means you’re more likely to sell your home quickly while it may be a struggle to find a new place to live. You may have to expand your search for a new home.
A buyer’s market means your current home will have an uphill battle. Often, it requires making updates to your home to stand out from the other homes. Or, you’ll have to set a price that’s reasonable. Buyers won’t look at the home if it’s being listed for too high.
If you sell first, then you’ll have to find a temporary place to live while looking for your next home. You won’t have the stress of a down payment. And if you buy first, you’ll have two mortgages and it can make it harder to qualify for a new mortgage since you still have responsibility for your old home.
Explore Financial Options
It’s easy to know that if you sell first, you’ll be prepared for the additional costs of renting between homes. To help ease the pressure of finding a new home quickly, ask your real estate agent about doing a rent-back agreement.
For those opting to buy first, ask your realtor about contract contingency and a bridge loan. There are advantages and advantages of both options.
If nothing else, be prepared for the worse outcomes. When you accept them, it’ll be easier to manage. For example, if you accept that you may have two mortgages for a few months, then you can plan for that. You may have to put off selling while you put some money away to handle two mortgages. At least, you’ll be prepared for it instead of being surprised by it.
It’s easy to feel pressured into making fast decisions. Don’t. It’s important you take your time and find the right home. It’s good you’re thinking about these things and planning. That will take out some of the pain in buying and selling a new home at the same time.