Life has a way of throwing you curveballs when you least expect them. If you thought buying your first home was stressful, it is a piece of cake compared to buying and selling at the same time. There are times when you will find your dream home seemingly out of left field. You may have just found a buyer for your home and without even trying stumbled upon a home too good to be true. Instead of passing on the opportunity you should be ecstatic and embrace the challenge. Buying a new home while selling yours simultaneously isn’t ideal, but something you shouldn’t avoid either. Follow these four tips to help get you through the process without losing your mind.
Run The Numbers.Before getting too far you should run the numbers to see exactly what your options are. Depending on your debt to income ratio you may not be able to carry two mortgages, even for just a few weeks. You should immediately reach out to a local lender or mortgage broker and ask them to run the numbers and see what you are approved for. This will tell you if you must sell first or you can get away with a simultaneous closing. If you must sell at the same time your real estate agent and attorney will work to coordinate this for the same day. Whatever you need to do you should find out all your options asap, so you can make your decision on the new property without losing your dream home.
Seek Good Attorney.With a simultaneous closing you need to get everyone on the same page. Perhaps the most important person on your team will be your real estate agent. With most purchase closings they may not have to do too much until the day of the closing. With a buy and sell, they have to reach out to the all other attorneys involved as well as their real estate agents. They will act as the point for both deals and tell you what needs to be done and when you have to do it. Now is not the time to go with an unexperienced attorney who doesn’t know the process. Even if they charge a little more, it will be worth it for you when you close both transactions.
Map Out A Plan.For as long as it takes until you are in your dream home things will seem a little crazy. You will have a lot on your plate in terms of packing and setting up the new property all the while trying to run things day to day. It is best to map out a game plan for what must be done, and when. Start with your existing home. Without the sale, nothing on the new property will get very far. Map out when you plan on packing, what can be sent to storage and what items you want to get rid of. Think of any things per the contract that must be done and make calls to do them. With the purchase you should think about what is necessary to live in right from day one. Contact the utilities, cable company and moving company. You may need to live uncomfortably for a few weeks, but it will all be worth it.
Have Contingency Plan.If things work out exactly as you plan you should consider yourself lucky. The more likely scenario is that something will throw a monkey wrench in your plans and cause a setback. When this inevitably happens, you should have a contingency in place. Where will you live if your closing gets pushed back a week? Do you have somewhere you can store all your belongings? What would you do with work, or your kids’ school? You don’t have to dwell on the worst-case scenario, but you should at least consider it.
Buying and selling happens more than you more think in real estate. Instead of shying away from your dream home, think about how you can make it work.