How to Buy and Sell a Home at the Same Time

January 12, 2020 | Uncategorized

Buying a home is often a stressful situation on its own. Add in having to sell an existing home and the stress typically doubles. At least if you’re looking at homes in Chesterfield VA, you will find a variety of excellent homes in fantastic communities from which to choose if you go with LifeStyle Home Builders. No matter the market, they’re bound to have a dream home for you.

Still, it does pay to have an idea of what kind of market you’re looking at, both as a buyer and a seller. You may want to have multiple homes in mind for purchase should a deal fall through or a house be snapped up before you can make an offer. You also need to be realistic about the value of your own home. You may want more, but have your home properly appraised and inspected before hand so that you have a true sense of the value and any repairs that may need to be done or that could affect the final price.

As for whether you should sell or buy first, it really can go both ways and depends on your financial situation. Selling first is better financially all around usually, because this means you don’t have to pay two mortgages and you’ll find it easier to get a mortgage for your new home. However, if you sell before you are able to close and move in to a new home, then you do have to face the need to find a rental property that is flexible while you wait to move into your new home. Sometimes, the buyer of your existing home will allow you to pay rent or cut the final asking price to let you stay in the home for typically 60-90 days until you’re ready to move. It’s always worth asking.

Ideally, you will manage to sell and buy at roughly the same time. However, there can be delays such as the buyer taking longer than expected to get a mortgage, or inspectors finding problems with your home that can cause delays. If you’re purchasing a brand new construction home, you also have to make sure your new home is finished in time for you to move. While there’s not much you can do, it’s still a good idea to seriously plan out your options for either situation and make sure you are financially able to deal with any issues that may arise.

If you’re worried about the financials, a bridge loan may be an option. These loans are helpful if you planned to use the proceeds of the sale of your first home to buy the second. It is a short-term loan, repaid upon the sale of your original house.

Ultimately, try not to let fear overtake you. Don’t take the first house available if it’s really not right, even if it means renting briefly because your home has already sold. In addition, don’t take a bid that you really feel is too low if you can manage to hold out. You have to have a clear understanding of your finances and what you can manage and for how long. Hopefully, at the end of it all, you’ll just have the one mortgage on one of the beautiful homes in Chesterfield VA built by LifeStyle Home Builders.