Thinking of Buy and Sell a House at the Same Time?
With the right planning, it’s possible to buy your next house while you sell your current one.
Selling your house and buying another home at the same time need multitasking brain
Here are some strategies to connect the pieces together so you don’t get stuck in the middle of 2 houses.
- If you have a mortgage on your current home and you buy a house before selling, you could get stuck with 2 loan payments soon after you close.
- If you sell your current house before buying the new one, you might have nowhere to go after the closing.
- You may need cash proceeds from the current house to put down payment on the new house, in this situation, you can’t buy before you sell your current house.
But with good planning, the right financing and negotiating, you can time the sale of your current house and the new purchase in a way that works for you.
Get ready to sell and buy with concurrent closing!
Selling and buying a home concurrently means that funds needs to be wired to multiple accounts. Here’s an example of how a concurrent closing might go.
Step #1: Your Buyer pays off your current mortgage on a house.
The Buyer wires the funds for down payment and closing costs to the Escrow/ Title Company to purchase your house.
Step #2: The Escrow/ Title Company pays off your existing mortgage.
If you have an outstanding mortgage on the house you’re selling, the Title Company pays off that mortgage.
Step #3: The Title Company transfers any access funds to the Escrow Company.
The Escrow Company handling the sale of your home disburses funds to you, the with any net Proceeds from the sale of your home.
Now you become the Buyer to close on a new home.
Same steps above are being repeated. However now you are the buyer
Suggestions for a Smooth Concurrent Closing
- Many people work together with one title/escrow company to close on time.
- There are various steps involved in closing an escrow. A concurrent closing doubles the workload for everyone.
- What if your home’s Buyers need to sell their home to pay for your home?
- If your Buyers also need a concurrent closing to buy your home, the number of steps can triplex.
- Also if there is a interruption with the sale of your Buyers’ home, there will be a delay with their purchase of your home as well, and your subsequent buying of your new home. It can feel like a dangerous domino game.
- Use the same Title /Escrow Company for both selling and buying. If only one Company handles both transactions, it can take your seller proceeds and apply them directly toward the purchase of your new home. Cutting the number of wire transfers can speed up the process.
So what’s the first step?
We are here to help you with all the necessary steps and Keep it Simple!
Reach out to us for no obligation Free in person consultation with us for your current financing situation and meet with our realtor at the same time in one sitting to help you sell and buy a home at the same time
Simply complete the basic information below and we will contact you within 2 business hours.
