4 Tips to Easily Sell and Buy a Home Simultaneously – Our Guide
Buying a home is not easy, nor is selling one. However, if you attempt to do both simultaneously, the challenges get even more significant. Fortunately, it is not impossible! With the right approach, you can easily sell your home and buy a new one without much trouble. In fact, you may even end up enjoying the entire process, knowing that you are out with the old, in with the new in no time at all. To assist you with your home selling and buying efforts, here are some essential tips to help you do so easily.
1. Agree to buy only when sold
If you are in contact with the seller, one of the best things you can do to ensure you don’t end up buying a home without selling the old one is to come to an agreement with which you will only buy it when you finally sell. Such an agreement is of no loss to you nor the seller. That is because, if you cannot sell your home, you can easily walk away from the agreement. However, this also means that the seller can sell the house to someone else if they receive an offer that is not conditional.
2. Rent out your previous home
A good way to gather more funds for a down payment if you do not already have one or do not have enough is to rent your old home while looking for new properties to buy. This will also come in handy if you are getting a new mortgage for the new house, where the money earned from rent can be used to pay off the old rent.
3. Utilize a bridge loan or a HELOC
If you need a loan for the new down payment, you can opt for bridge loans. This loan is specifically for those buying and selling homes simultaneously, where the loan is paid off from the sale of the old home. A Home Equity Line of Credit (HELOC) can also be used to pay for a down payment using your old home’s equity. It also allows you to repay through credit at lower interest rates, perfect if you already have plenty of equity in your old home.
4. Transfer your current mortgage
When selling your old home while still under a mortgage, you can transfer it to your new one, given you can cover the down payment all by yourself. This may be the course of action you want to take if there are prepayment penalties, a fee you have to pay when fully paying your loan earlier than the intended date, with your old loan.
By following these pieces of advice, you will be able to enjoy a smooth process of selling your old home and buying a new one at the same time. That said, if you are having trouble doing any of the above, do not worry. Agents are ready to help you whenever you need it. Whether you’re trying to purchase the best home that fits your needs or selling your home at the best price, they can help you do so. Do not be afraid to work with them if you need their help, as they will make the entire process easier.
Everything Real Estate is your go-to real estate resource for buying, selling, and investing real estate in Edmonton. If you are interested in buying and selling a home in Edmonton, let us assist you today!