How to Buy and Sell Properties at the Same Time

If you’re like one of the millions of Americans who own a home but are ready to trade up to a nicer home or relocate, you’re in the common situation of needing to buy and sell at the same time. 

Though this can be a stressful situation — especially if the timing doesn’t go your way — it can be done successfully and with a minimum of frustration if you plan ahead and work with an experienced Overland Park real estate agent. 

Here are some tips to help you on your simultaneous selling journey.

One of the mistakes simultaneous sellers make is jumping the gun when it comes to looking at new Overland Park homes for sale. If you don’t focus on prepping your current home for listing, you run the risk of falling in love with a new home and buying it while still having weeks (or months) of prep work to do before you sell the house you own. This can lead to months of paying two mortgages or prompt you to rush your home to market and decrease the amount you’ll ultimately get for it.

Before you start looking for new listings, walk through your current home with your Overland Park real estate agent and make a to-do list. This can include big items like replacing the roof or remodeling the kitchen, as well as smaller issues like fixing scuff marks on the wall or repainting the mailbox. After you’ve checked off all the items on your list, you can start the exciting process of exploring new Overland Park homes for sale.

 

In an ideal situation, you will be able to sell your current home and use the equity to make a down payment and cover closing costs on new Overland Park homes for sale. 

However, this is not always what happens, so you need to have a backup plan in case you buy before you sell and can’t access the equity in your home. Here are some options:

 

To get the money you need for a down payment and closing costs, consider doing a cash-out refinance on the home you own. This program pays off your current mortgage and takes out another one for more than what you owe. You will receive the difference in cash, which you can then use to cover the costs of the new home you’ve purchased.

 

A HELOC, or home equity line of credit, is a revolving line of credit that is secured by your current home. A HELOC normally has a lower interest rate than other types of loans, and you can choose how much of the loan you access and pay subsequent interest on.

 

If you have a qualified 401(k) plan, you may be able to borrow from it to make your down payment and pay costs. Talk with your financial advisor to see if your plan allows for borrowing and if this is a smart decision for your financial future.

 

It’s rare that the simultaneous selling process goes so smoothly that you can close on your current home just in time to move into your new one. In most cases, you will either find yourself homeless for a few weeks (or months) or you’ll temporarily have two homes with two mortgages. 

Here are some options that will help you navigate these possible situations:

 

Settled on an Overland Park home for sale you want to buy but can’t seem to sell the home you already own? Consider renting it out to help you cover the mortgage. You can either rent it out short-term until you find an interested buyer or turn it into a long-term rental for an additional stream of income.

 

With a leaseback agreement, the person you sell your home to agrees to rent it back to you for a certain time period. This is a good option when you’ve sold your home but have not yet found a new one you want to buy. You could also request a leaseback if you buy a home and have not yet sold the one you own.

 

A storage unit is helpful no matter what situation you find yourself in when buying and selling Overland Park real estate at the same time. Removing items can help you stage your home for sale and will give you a headstart on the moving process. It can also help you avoid clutter if you need to temporarily live in a rental or with friends or family members.

 

Some people who want to buy and sell at the same time are financially prepared for any possible scenario, while others are not in such a solid position. Before you make the decision to move forward with the process, talk with your Overland Park real estate agent as well as your financial planner about how your finances will handle paying two mortgages for an extended period of time or coming up with cash for a down payment and closing costs. In some situations, the smartest move might be to sell your home before you even begin the process of looking for a new one.

Buying and selling homes at the same time is a common situation, but it can be highly stressful if you don’t take the time to plan and consider all your options. When you work with an experienced Overland Park real estate agent and take the time to plan ahead, you can reduce stress and ensure that your simultaneous selling process goes as smoothly as possible.

 

If you’re ready to get started, reach out to an expert agent like Trent Gallagher for guidance.