What To Do When You’re Buying and Selling At The Same Time
There tend to be a lot of different plates spinning in the air when it comes time to buy or sell a home, and that goes double for when buying and selling are both on the table. When it comes to buying and selling property at the same time, there are a few things to keep in mind that can make the process run much smoother. For our clients at Mortgage Maestro Group, here are some of the additional steps we advise during these more complicated moves, which often help save time and headaches down the road.
The good news is that one of the most important goals when both selling and buying is something that you are most likely already doing. You are going to want to pay attention to the markets in both locations, for the home you are going to list and the property you are wishing to purchase. When looking to time a dual transaction properly, it is often best to try and sell first in a buyers market and buy first in a seller’s market. Often, finding a sweet spot in the fluctuations of two different markets can save you a considerable amount of money.
Just like for markets, the goal of your closing dates is going to be synchronization. It is most often beneficial to close on your departing residence before closing on your next home. For most this is out of necessity, though for some (with capability or desire) closing on the next home, before selling your existing house can make things smoother. The last thing you may want is to be out of your previous home already, while still wrangling legal contracts and logistics for your new house.
Because the number of moving parts doubles when both buying and selling, there is a greater probability of something unexpected happening. These could include market fluctuations, revelations about one or both properties, or any number of normal changes to your personal life. In most of these cases, having a financial cushion is going to be helpful. If you need to take on two mortgages for a brief period of time, need to find a short-term rental or a hotel, or something else unforeseen, you are going to want to have a cushion of funds to use.
It may not always be possible given the geography of your different purchases, but having one real estate agent handle both your purchase and your sale is ideal. This cuts down on extra costs, eliminates the possibility of miscommunication, and just makes things run a whole lot smoother. Agents would much rather handle both sides of the transaction, rather than deal with another party, as well.
Bank transfers and contract finalization have a way of taking just a bit longer than is convenient or expected, so always try and buy yourself some time. Avoid closing on a Friday or late in the afternoon, that way there is ample time throughout the day and the week for your financial partners to finish up their work.
The Mortgage Maestro Group team has experience in many situations homeowners today may face. Even if selling your current home and moving into a new one is just a distant thought, we’d love to chat about your situation and help if we can. Give us a call at 303-779-0591 or fill out our contact form here.