How to Buy a House While Selling Your Own: 10 Options to Consider
Your house was perfect for you and your family when you bought it — years ago. But you’ve all grown, and now it’s time to find something that’s a better fit. Unfortunately (because the experience usually isn’t fun!), this has you wondering how to buy a house while selling your own.
Buying or selling a property can be stressful, no matter the circumstances. But if you need to do both simultaneously, it can escalate from “stressful” to an extremely daunting experience. You want to find the best offer for your current home while ensuring you have enough of a down payment for your new property. All the while, the timelines need to match up so you’re not left without a roof over your head.
Sound intimidating? That’s OK! We’ve talked to veteran real estate agents to build an end-to-end guide on how to buy a house when you own a house. So, instead of stressing your way through two sales, you can set yourself up for success and have your bags packed for your new home in no time.
First: Do your research
Before you begin choosing the best way to buy a house while selling your own, talk to a real estate agent who can break down all of your options.
Your agent can give you a sense of what your house could list for right now and how fast it’s likely to sell. They’ll also get a gauge for your timeline and build a step-by-step process that makes the most sense for you.
Factors agents consider as they walk you through the first few steps
Your current financial situation: The biggest challenge you’ll likely face is coming up with a down payment for your new home while your equity and investment are still tied up in your current house. Your agent will ask how much you have available to put down if you were to buy a home today. They’ll also introduce you to options, such as a bridge loan or home equity line of credit, to assist in your sale if needed.
The condition of the house you own: This will factor into how fast your home will sell on the current market and if you might encounter any issues as you list your home.
Your timeline: Do you have any flexibility around moving and closing dates? Do you have a limited amount of time to complete both sales? These are all questions your agent will consider. There will likely be some overlap between sales, so preparing an easy-to-follow timeline will make things a bit less stressful.
Equity of your current house: This ties back to your current financial situation, but it will give your agent more information to help you decide if you should sell first or buy. If you sell your home first, your equity can assist in a down payment for your new property.
Next: Understand the timeline
A real estate transaction can be a complex process by itself. But if you decide to buy and sell at the same time, even more steps are added that can disrupt or delay either sale.
