If you’re a homeowner looking to buy your next home, then you’ll likely have to juggle selling and buying at the same time. In an ideal world, you’d close on both homes on the same day, but that’s rarely the case. Expect some time between selling your house and buying a new one – or vice versa.
In this Redfin article, we’ll outline the steps for selling and buying a house at the same time. Whether you’re looking at homes in Indianapolis, IN, or in Lubbock, TX, here’s how to sell and buy a home at the same time – and what you can expect along the way.
Start by understanding your local housing market
The first step when buying and selling a home at the same time is to decide what to do first – sell or buy. Start by evaluating the local housing market to see which option makes the most sense. If you’re moving to a new city, the housing market may be different, so you’ll need to time your home sale accordingly. Understanding whether you’re in a buyer’s or seller’s market is a great starting place.
Is it a buyer’s market?
A buyer’s market means there are more homes for sale than buyers. As the buyer, you’ll likely have more options and negotiating power. However, it could take longer to sell your home than you’re anticipating.
Options to consider:
- Home sale contingency: Allows you to back out of buying if your current home doesn’t sell. It’s useful if you’re relying on proceeds from the sale.
- Extended closing: Gives you more time to sell your home before finalizing the purchase.
Is it a seller’s market?
A seller’s market means there are more buyers than homes for sale. As the seller, you’ll likely have an easier time selling your home. However, you may find it difficult to buy a home in this market.
Options to consider:
- Settlement contingency: Used when you’ve accepted an offer on your home but need the sale to close before purchasing a new one.
- Rent-back agreement: Allows you to temporarily…