Handling one home transaction is hard enough, so how could anyone possibly handle two at the same time? The truth is, with a little luck and a lot of planning, buying and selling simultaneously can be easier than you think. This article will walk you through the entire process of how to handle multiple Highland homes transactions at the same time. These tips will help you prepare for the process so that you can sell one home and purchase another without stress.
1. Do: Think about finances
In a perfect world, you could complete both transactions with perfect timing so that you don’t ever have two mortgages at one time. However, this isn’t always a possibility, and it’s one of the main factors that a lender will consider. As they run your numbers and determine whether you’ll qualify for a second loan, they will want to know how long you could handle both mortgages before it becomes a significant financial burden for you. A major factor here is how much cash you currently have on hand, so make sure you have a significant amount in savings. In some cases, you may qualify for a bridge loan to help you make your new purchase even if your previous home hasn’t sold yet.
2. Do: Get ready for both transactions
You’ll do the same things that any buyer or seller would do — you’ll just have to do them both at the same time. As you prepare to buy, make sure you speak with a lender about what you can afford. Your lender will help you get pre-qualified for a loan so that you can shop with greater confidence.
While you do this, take time to get your current home ready to sell. If you have time to make a few small upgrades to the home that could increase the return you’ll get, that’s great. Even if you don’t have time to make any renovations, make sure your home is clear of clutter and ready to show to potential buyers.
3. Don’t: Expect everything to happen overnight
Realistically, it will probably take several weeks (or months) to complete your sale and purchase. You’ll need a few weeks to find a home that you like, and depending on the time of year and how many Highland homes are currently for sale, it may take even longer.
Once your home is ready to go on the market, you might have to wait several weeks before you get an offer you want to accept. Once you go under contract to sell your current home and buy a new home, each deal will require 30 to 45 days to get ready for closing. In total, you’re probably going to spend two to three months at a minimum completing both deals, not counting the time you spend getting ready for the process.
Remember that you can always break down the process into smaller chunks and it will likely feel less overwhelming. Start by getting your current home ready to sell. Once you feel like your home is ready to hit the market, you can start looking for a new home to buy. When you have a contract to buy a home, you can list your current home and make public your desire to close by a certain date. The ideal situation is that you close on the sale of your current home in the morning, with the moving truck fully packed. Then, you’ll head to close on your new home in the afternoon and begin unpacking in the evening. This makes for a packed day, but it ensures there are no gaps in your living situation.
4. Do: Have contingency plans in place
While the situation described above sounds fantastic, most people don’t experience a transition that is quite as seamless. This is why you should have contingency plans in place if you’re not able to complete both transactions within a few days of each other. These plans will protect you financially, and they will make sure you always have a place to stay.
If the closings are only a few days apart, you can stay at a hotel or with a friend during the interim period. If they are a week or more apart, you may need to think about other options. Sometimes, the buyer of your new home will agree to a rent-back deal where you can continue to stay in the home while you wait to close on your new home. Usually, these arrangements max out at sixty days, but most sellers don’t need this much time.
On the other hand, if you’re buying a new home and you’re worried that your current property won’t sell, you can write a seller’s contingency into the contract. This allows you, as the buyer, to walk away from the deal if you’re concerned that your current home won’t sell on time. The party who is selling the home you’re buying doesn’t have any incentive to include this clause — in fact, it creates additional risk for them. For this reason, if you want this to be a part of your contract, you may have to offer the seller a higher price on the home, or some other extra incentive in the contract.
5. Do: Work with a great real estate agent
Ideally, you can have the same real estate agent handle both transactions. Experienced real estate agents already know what it’s like to have multiple deals happening at the same time, and they can help you manage the complexities of both deals while using their wisdom and expertise to streamline the process. If you’re thinking about moving forward with a sale or purchase in the Denver area, consider reaching out to Jason Sirios. Jason is highly driven and exceptionally creative. He loves connecting clients to their dream homes, and he’s especially skilled at using cutting-edge marketing strategies to help his clients’ Highland homes stand out from the crowd. He would love to partner with you, and he’s looking forward to taking your call.