Being a home buyer and seller at the same time
Being a home buyer and seller at the same time
October 13, 2011
Home buyers and home sellers each face their own challenges, but for many the two processes go together. Most families cannot afford to hold multiple homes, so the decision to move generally means both buying a new one and selling the current property.
Those attempting to both sell their home and buy a new one may feel overwhelmed by the combination, and can benefit from turning to their real estate agent for help. While some agents work only with home sellers or home buyers, others may be prepared to help with both tasks. If not, their firm may still serve both needs, or they may recommend an experienced colleague.
Buying first
SmartMoney notes it may be impossible to perform the closings for both deals on the same day for any number of reasons. For example, when moving to another state, or even a shorter distance, simple travel time may render such an arrangement impossible or impractical. Even if the two deals are closed on dates very close together, difficulties remain.
When buying first, homeowners must be prepared to temporarily cover the cost of two households. If the first home does not yet have a buyer, or the deal is not yet finalized, the owner must be sure to maintain the property in good condition. This can be difficult with the distractions of moving into a new home, but it is necessary for a sale.
Buying first may give families some logistical benefits. Specifically, furniture and personal belongings can be moved more conveniently from the old home into the new one, on the home buyers' schedule, without having to coordinate.
Selling first
When selling first, the most immediate problem becomes the need for a place to live between the two transactions. Those fortunate enough may have relatives or friends living near their destination, and can try staying with them briefly.
Another option, however, is to rent the home. Home buyers may be willing to rent their new purchase back to the previous owners for a brief period while the other side of the process goes through, according to SmartMoney.
As an advantage, owning only one home at a time means coping with fewer overlapping responsibilities, as well as providing the financial advantages of making the proceeds of the sale available for the purchase.
The National Association of Realtors recommends taking some time at the beginning of the process to determine whether it will be easier to buy or sell. A real estate agent can help with this, clarifying the market conditions in both relevant neighborhoods to figure out which aspect will be more difficult.