Things can become even more complicated if you are depending on receiving the price of the place that you are selling to buy your next home, but it’s taking longer… so much longer to get sold than what you were expecting.
Don’t lose hope; going through this whole process may be difficult, but it’s not, by any way, impossible, especially with the help of a skilled real estate agent, and by following these simple steps that we assembled for you, so you can relax:
1- It’s all about the timing!
Succeeding the process of selling and buying a house in the same period of time depends very much on the transactions’ timing. However, this factor is determined by the situation of the housing market.
In fact, if you are in a seller’s market, your house has to be market-ready, so it can sell faster, mostly if you have chosen the right price, so you need to be careful about your finances and selective about the offers that you are receiving, since you need to make an offer in the right time or the place that you desire to buy, and since you are less likely to have much flexibility when it comes to postponing the closing date.
On the other hand, if you’re in what’s called a buyer’s market, selling your current house may take more time; in this case, you should be more patient when it comes to making an offer on the place you want to buy, at least until a suitable buyer comes along.
2 – Choose the right people for the job:
Picking the right timing is good, but it’s not enough. You need an experienced real estate agent by your side, not only to help you through the complicated process of selling and buying at the same time but also to help you estimate realistically the price that your current place is worth.
In other words, getting a good real estate agent means that you will know exactly how much you should expect as a price for your current house, and how much you should accept as an offer for your next place. Therefore, you won’t end up overpaying unknowingly. You will also be aware of all the expenses related to closing the deals, so you will not be facing any (bad) surprises, and of course, all that while getting someone to take the pressure off you when it comes to all the related complications to the paperwork required in selling and buying houses.
3 – Don’t focus entirely on the price:
Getting the cost of your dreams on your house and getting a fantastic deal on the house you wish to buy is the best-case scenario for anyone who desires to go through the process of buying and selling in the same period.
However, going smoothly through this operation requires more than just focusing on the price.
It would help if you also considered negotiating the date of the closing of both deals in a way that they align perfectly, or at least good enough, with each other.
Having both deals closed simultaneously or in only a few days of difference can wash away all the potential hidden expenses that can appear if you didn’t give much importance to the closing dates.
4 – Have an escape route:
To avoid living the nightmare of being unable to get your new place because your mortgage has been declined, or even being in a position where you lack the resources to close on your next place, you should consider having an “escape route.”
What’s that? You may ask.
Well, it’s no more than a contingency, which is a clause included in offers that give parties the right to back out of the contract under certain circumstances, like, let’s just say, the case where you couldn’t sell your current place.
This clause has a huge role in protecting you as a buyer since we don’t live in a perfect world where everything goes as we wish, so having a way to get out of a deal when things go (very) bad, can be very relieving.
5 – In case you have no escape route:
Just in case you weren’t aware of the existence nor of the importance of contingency clauses, don’t panic! There are other ways you can still save the day if everything about your plan goes completely south.
If you find yourself stuck with two houses (if you bought your next house but couldn’t sell yours yet), you can rent your current house to cover the expenses.
And in case you did sell your place, but the deal about your next home hasn’t closed yet, you can always find a place to rent until you can finally move; however, you may also need to rent another place if you own a big amount of possessions.
However, and in case the previous option is overwhelming for you, here is another idea: you can request the new owners to wait until you move out to your next place, in exchange for a rent that you pay them.
In conclusion, even if the whole process of selling your current house and buying the next one at the same time is exhausting, some ways can make it smoother than what it usually is.
Most importantly, finding the right real estate agent is vital in succeeding in the process. A realtor that understands your needs and demands can make the process as smooth and stress-free as possible. Still, other factors are also important, such as planning the right timing to start the process and negotiating the date of both closings, all while having an escape plan in case things don’t go as planned, but in case they do, some short term solutions can still save the day.