How to Buy and Sell Your Home at the Same Time

How to Buy and Sell Your Home at the Same Time
Lucas Smith
Tuesday, October 11th
By Lucas Smith

One of the biggest challenges we see in the current market for home sellers and buyers is the classic Real Estate Catch 22, which is what often happens when a buyer has a house to sell before buying their next home.

According to studies, over 80% of home buyers have a home to sell before buying their next one, so the question is, what are some things home sellers/buyers can do to make it easier on themselves?

Most of us will need the net proceeds from the sale of our home to purchase our next home. Clients we have discussed this with have a very real fear that one of two things will occur:

  • They are afraid that if we sell their home too fast, they will be rendered in a temporary housing situation basically homeless.

  • They use all available funds to purchase their new home, and then they have the very real fear of being stuck with two homes and therefore two mortgages to pay.

Neither one is a great option, but the great news is that we have solutions!

We can sell your home!

Home sellers are much more likely to accept a contingent offer on their home from a buyer who already has an accepted offer on their home and are already in escrow.

To help with that we created a 16-point marketing system and we have a huge pool of over 7,000 buyers currently in our database, plus a proven track record of getting sellers the most money for their homes with the least amount of hassle in the shortest amount of time.

Compare that to the seller receiving a contingent offer from a buyer who has a home to sell but that’s not even on the market yet, or if it's on the market is not currently in escrow.

What if you have not lined up a new home yet?

We can put contract protections in place to give you an “out” for at least 60-90 days while we shop for your new home. That is actually a bit less stressful than trying to time the market or being under a tight 30-day time crunch to find, purchase and move into your new home.

We can make an offer on a home contingent on you selling your home

This for certain is the riskiest strategy and by far puts the most pressure on you.

Think about it, you are busy preparing your home for sale and at the same time out shopping for your new home, and when you make an offer you have to disclose to the sellers that you are selling a home that’s not in escrow yet. This type of offer is rarely accepted by a seller in a seller’s market. The sellers usually have a plethora of offers to choose from, so unless you are paying them a ridiculous amount of money to wait for you to sell your home the likelihood of your offer getting accepted is minimal.

You do not have to sell to buy your next home

You could buy your next home first if you're in a position to do this. This way you can prepare your new home for moving and move at your pace and then sell your old home. Unfortunately for a lot of our clients, this is just not possible because they need the money from the sale of their current home to finance the purchase of the new one.

Finance options to buy first

Even if you don’t qualify for two mortgages, we have a New Lender option that allows you to buy your new home first and move before selling your previous home. Of course, there are some credit and equity requirements that must be met in order to qualify for this program.

We can make you a cash offer on your home

We can do this because we work with some of the nation's largest corporate cash investors, thus we can make you a guaranteed cash offer on your home and negotiate you staying in your home while you shop for your new home.

If you have any questions about what you can do to avoid the dreaded Real Estate Catch-22, feel free to call us at (714) 406-1414 for a free report.