Buying and Selling Property At the Same Time

Buying and Selling At the Same Time (Source: an ideal world, buying a new home while selling your own one would be a breeze. You'll find the perfect new home right as an interested buyer makes you an offer you can't refuse on your current home, and you close on both without another worried thought.

If only it were always that idyllic of a situation!

Buying and selling at the same time usually comes with its own set of complications. This season, we are seeing a large number of homebuyers out on the market, coupled with a definite lack of housing inventory.

For sellers, this is great news, as they will often be able to get offers at or even above their asking price, and move their property quickly off of the market. For sellers who are also buyers, however, there is a definite and legitimate fear that they will be without a place to live once their sale goes through.

The best way to combat this complicated situation is to work with a real estate professional from the very beginning of your process. They will be able to help you articulate your needs and help prepare you for the conditions that may occur during your process (and the solutions that go along with them.)

Here are some examples of a challenging situation and one possible solution.  There are often multiple viable options:

1. Your home sells before you are able to purchase a new one

In this case, you and your agent can negotiate a rent-back from the buyers as a short-term option. Note that this option will likely not give you more than 60 days, as a rental lasting longer than 60 days becomes an investment property.  This saves you from making two moves, one into a short-term solution and a second into your new homes. 

2. You purchase a new home before you can sell your existing property

Here, you can speak to your lender about qualifying for a bridge loan. A bridge loan is a financing option which combines payments for your current home with your next home into one loan. This can help "bridge" the gap between home sale and purchase.

3. You found your new "dream home", but need the proceeds from selling your current place for your down payment and mortgage qualification on your new home

Your agent can educate and advise you on a home sale and home close contingency. Your Realtor should be able to not only advise you as to how they work, but also assist you in strategizing the best chances of success.  Often a home seller can be reluctant to accept these terms, but a capable agent has the best ability to sell the virtues and diminish the expectation of risk. 

4. You have a purchase contract on your current property, but your new home closing is moving more quickly

Be sure and speak with your broker associate to write in a home close contingency when the timeline is this close to one another. This is a special provision in a contract which makes the buyer purchase offer contingent on the sale of their own home.

All in all, be sure you're working with professionals in the field to ensure you do not put your living conditions in jeopardy. They will help identify your needs and work to protect you from all circumstances.

Questions? Need help? Don't hesitate to send us an email or give us a call!

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2526 N Lincoln Ave
Chicago, IL 60614

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