Trying to buy a new home when you already own an existing home can be daunting. How will you ever coordinate selling and buying at the same time? While it's not always a walk in the park, the good news is that people buy and sell homes simultaneously all the time—and a reputable real estate agent has the experience and market knowledge needed to help you pull this task off, too! Before you dive into it, however, there are some things to keep in mind.
Know Your Market
The current real estate market in your area will ultimately play a huge role in how you should approach buying and selling at the same time. If you're currently in a seller's market, then you may be better off waiting until after you have an accepted offer on a new home before you list your current one. On the other hand, a buyer's market may make it more sensible to list your home before you start putting in any offers.
Know Your Finances
Your financial situation will also need to be taken into consideration as you navigate the buying and selling process. Will you be relying on profits from the sale of your current home to make a down payment on your next home? If so, then you may have no choice but to list and sell your current home before you can close on your next one. You may also need to have your agent write contingencies into your offer on a new home.
On the other hand, if there is any chance you may close on your new home before you officially sell your current home, you'll need to make sure you have the credit worthiness (and income) to potentially afford two mortgages until you close on your existing home.
Always Have a Contingency Plan
Even if you end up with a "perfect" timeline where you're scheduled to close on both homes on the same day, it's wise to have a contingency plan in place. Deals fall through and closing dates can be subject to change. Have a "worst-case scenario" plan in place so you know exactly what to do if anything falls through, even if that means moving into a hotel temporarily after selling your existing home and waiting to close on your new one.
Choose Your Agent Wisely
The right real estate agent can make all the difference when you're trying to time and coordinate a simultaneous purchase and sale. Take your time interviewing agents until you find the right one who has specific experience helping clients go through the buying and selling process at the same time. From there, you can enjoy some much needed peace of mind as you embark on this journey.