Selling and buying a home at the same time can be difficult, but it is possible. Keep reading for 5 tips on how to do it correctly.
1. Before selling, go visit properties you’d potentially like to buy
Visiting local properties to see what’s available on the market is an important first step before you list your home for sale. As a rule of thumb, your “buy” should be ready before you list.
This might sound obvious, but you’d be surprised how many people rush into the process without laying the basic groundwork.
Note: Right now, housing inventory in Las Vegas is relatively tight, and overpriced homes are sitting longer on the market, so caution is advised if you want to sell and buy at the same time.
2. Plan for the transition
Managing the gap between selling your old home and buying your new one is crucial, and this is where having a clear plan makes all the difference. There is no single best way to approach this process, only what works best for your situation.
That said, options include selling first and then renting until your new home purchase goes through, using a home close or home sell contingency, or even staying with family.
3. Gather documents while talking to your lender on the phone
Buying and selling a home at the same time requires heavy documentation, and if you’re new to the process, it can be a little confusing.
To make things easier, you should gather the documents you need while speaking with your lender on the phone or at least take careful notes about everything you will need so that you can provide them later on. Once you go under contract, you’ll then be ready to provide proof of everything that was discussed.
Keep in mind that your lender will ask about your income, credit score, and any outstanding debts, but usually, a short phone call can confirm whether you qualify for a mortgage. Afterward, keep a close eye on your credit score. Dips in your score can jeopardize your loan approval.
4. Talk to a local real estate agent
When selling and buying a home, it’s a good idea to have a few different real estate agents assess your home’s value. You can compare their opinions and get a better picture of where your home fits in the local real estate market.
Home markets fluctuate and are often complex. If you’re moving to Las Vegas, Nevada, from a different area, what applies in your current market may not apply in Las Vegas.
5. Invest in valuable low-cost updates to your home
Before listing your home, opt for updates that will add the most value without invoking unnecessary costs. It’s natural to overdo this part because most people want to sell quickly.
The last thing you want to do, though, is invest in high-cost updates that yield little benefit. Instead, focus on low-cost updates that offer a high return, such as:
- Minimal necessary repairs
- A fresh coat of paint
- Fresh caulking around windows, doors, and other seals
- New lightbulbs
- Yard cleanup
- Professionally cleaned interior
» MORE: Best Time To Sell A House – What Month?
Selling and Buying A Home at the Same Time FAQs
How do you sell and buy at the same time, in brief?
The short answer is: You sell and buy a house at the same time by planning in advance! Ideally, you want to prepare at least a year ahead of time and line up both transactions in a way that works for your situation.
Other than this, you want to work with real estate agents who are experienced in both listing and purchasing. They’ll guide you through the steps, clarify what works best in your local market, and keep your goals at the center of the decision-making process.
What’s the difference between a home sale contingency and a home close contingency?
Home sale contingency: This is a clause in a purchase agreement that protects buyers who need to sell their current home before purchasing a new one. It allows buyers to make an offer on a new property while giving them time to sell their existing home, with the ability to back out and recover their earnest money if their current home doesn’t sell within a specified timeframe. While this arrangement provides security for buyers, sellers will likely be hesitant to accept since there’s no guarantee the buyer’s home will sell.
Home close contingency: This means a buyer already has a contract to sell their current home. The purpose of this contingency is to protect the buyer if their current home sale falls through at the last minute, ensuring they won’t be legally bound to purchase the new home. This type of contingency is viewed more favorably by sellers because there is less risk involved.
While home close contingencies are safer, it can still be difficult to get sellers to accept, especially if they have multiple offers. Ultimately, having a home sale or home close contingency makes you a less competitive buyer and often requires you to offer better terms.
Should you sell your old home or buy a new home first?
It depends on your situation. Some people sell their old home first to free up funds, others buy and sell on the same day, and some who have sufficient resources even buy first and take on another mortgage temporarily.
Each approach comes with its own logistical challenges. For example, if you sell first, where are you going to stay while you’re in the process of buying your new home?
Is it safe to sell and buy a home at the same time?
It depends on how good your planning is. Good planning will help you avoid unexpected hurdles, especially if you start at least a year in advance. Otherwise, it’s not always safe. For example, if your local real estate market has low inventory, it’s not safe to sell because you’ll likely have a hard time finding a new home.
This is crucial: Don’t list your home for sale until you’ve found a place to buy…unless you have very strong personal finances and a compelling reason to do so. Again, everything depends on your situation, but starting with the purchase side is usually the better move.
Also, keep in mind that Las Vegas can be a transient city. You’ll want to factor this into your decision-making. Some Las Vegas homeowners rent for a short period before committing to a purchase.
What if you’re moving states when selling and buying?
Moving states complicates the process, but it’s still doable. If you plan on doing this, we recommend connecting your selling and buying agents.
Additionally, you’ll need to consider the logistics of interstate moves. This includes arranging for moving services and potentially setting up temporary storage.
Can you make money from selling and buying at the same time?
Yes, you can, but it’s not guaranteed. It largely depends on market conditions. For instance, if you’re selling in a hot market and buying in a more affordable area, you could profit from the price difference.
Is it difficult to sell and buy a home at the same time?
Yes, it can be very difficult and tricky. You need to be out of your old house by that morning, and there may be some uncertainty in the timing. Let’s say, for example, you want to paint your home before moving in. Well, that will change your moving timeline and require storage-in-transit services from your moving company.
Receiving professional guidance during this process is highly recommended, as this will help you avoid pitfalls.
Sell and buy homes at the same time with The Real Estate Guy
A good sign of a reliable real estate agent is someone who genuinely engages with you, asks about your goals, and weighs the pros and cons of each approach. That’s what we do.
Contact The Real Estate Guy to start a conversation.
» MORE: 10 Things To Remember When Looking For Las Vegas Homes For Sale
