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Buying and Selling Homes at Same Time

Buying and Selling homes at the same time is usually very attractive to the client. They don’t want to sell until they know where they are going. No one wants to be homeless!

However, in this hot real estate market, it’s just not as simple as it once was…

Buying and Selling Homes at the Same Time

How Does It Work?

In the local real estate market, we are seeing homes sell with a week or two of listing. It’s definitely still a Seller’s Market!

However, when you want to buy and sell at the same time, it takes some coordination, information and certain items to line up to pull it off!

There are actually a few different options:

1. Ability to Carry Two Mortgages

Some people qualify and are pre-approved with their lender to carry two mortgages. Doesn’t mean they want to, but this is a great way to both buy and sell at the same time. When this is the case, you do NOT have to make a “contingent” offer. (more on that in a minute)

If your current mortgage is low and you have lots of equity in your current home – all the better in the eyes of your lender and it’s easier to be approved for both buying and selling.

2. Different Loan Types/Programs

Another way is to contact your Mortgage Lender and see what programs they have available and that you qualify for.  There are “Bridge Loans” and “HELOC Loans” are two possibilities. You and your lender will come up with the best plan for your finances!

3. Other possibilities could include:

  • 401k Loan
  • Getting a Gift
  • Putting less than 20% down on your new home

Again, the best way to figure out what’s best for you is to consult your Lender and/or financial advisor since this is in their area of expertise!

4. Make a “Contingent Offer”

A Contingent Offer means you are telling the seller you want to buy their home but you need to get the proceeds from your current home in order to complete the transaction.

When you haven’t listed your current home for sale yet, this is called a First Right Contingency in Indiana.

You are telling the seller that if he/she/they accept your offer to purchase, you are going to put your home on the market to sell within (blank) days. You also tell the seller you want a certain number of days in which to accept an offer on your current home.

Best case scenario, you put your home on the market and you accept offer to purchase quickly. You then “lift” your First Right Contingency and continue with both buying and selling homes at the same time.

As a note, even though you lift the First Right Contingency, your purchase of the new home is still contingent on your current homes’ transaction closing – so you are protected.

The problem with this option is that most sellers don’t want to accept a first right – homes are selling pretty quickly and they don’t want to wait for you to sell yours before you buy theirs.

It can be tough to get a seller to accept a First Right. They will likely take another offer that does not have a First Right Contingency, meaning you lose out.

Again, talk with your lender and REALTOR and see what option is best for your situation!

Lining them Up

Now, if you go this route, the 2nd thing is to count on your REALTOR to get these closings lined up so you can have a smooth transition from your current home to your new home.

As your REALTOR, we will work with your lender, the title company and both agents on the other sides of your transactions to coordinate both deals. Cooperation is key!

Buying and Selling Homes at the Same Time

It can be done, for sure! There are options. Your best bet is to call us for a wonderful REALTOR, and then get hooked up with your lender/financial planner.

Together, we can come up with a plan to get you to your goals!

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