How to Buy and Sell Your Home at The Same Time

Want to cash in on all the equity you’ve gained, but not sure where you’ll go next? We get it! Putting your home on the market in the middle of a pandemic and a housing shortage while having to buy a new home can seem overwhelming. Fortunately, we’ve worked with many clients in the same situation and can pass on some sound advice to help make the process as seamless as possible.

One of the most common questions we get when our clients want to buy and sell their home at the same time is:

“If I Sell My Home Before Finding a New One, Will I Live in Limbo?”

We know it can seem like a gamble to perfectly plan a move out and move into your next home in such a competitive market. In our experience, success comes down to more than luck. Our goal as your real estate advisor is to understand your top priorities and negotiate the best deal and terms on your behalf. Contact our team to learn what options are available and start planning your next move.

Ease the Transition With a Leaseback Agreement

Want to give yourself a little extra time to find your new digs? A leaseback agreement can be a great option. In a competitive market, buyers may be willing to make significant concessions in order to get the home they want, such as allowing sellers to continue living in their home after closing for a set period of time and for a negotiated fee. 

While short-term housing such as furnished apartments, vacation rentals and month-to-month leases are also an option, we’ve had success avoiding temporary housing situations by helping our clients time their move perfectly.

Consider a Bridge Loan to Smooth Out Finances & Move Before Selling

A bridge loan is a short-term loan that uses equity from your current home to help you make an offer on a new one, without rushing to sell. If you're relocating for a new job, a bridge loan can afford you the freedom to move on your own terms and secure a new house, without having to wait for your current home to sell.

When you work with our team, you may be able to get up to six months of bridge loan payments and other associated costs fronted at no additional fees— an exclusive offering for Compass clients, regardless of the lender you use.* A bridge loan can make the financial part of the process a lot less stressful. 

Pictured: Malibu home sold by Lisa Kirshner Properties, March 2020

Don’t Drain Yourself With Unnecessary Renovations (If You Don’t Have To)

Shorten your sales timeline by focusing only on the upgrades that will help you sell your home quickly, within the price range you desire. Not all renovations offer a high return on investment and waiting to list could have a greater impact on the sale price of your home than leaving certain aspects as is. Consult with our team prior to listing to get an idea of what updates are worth tackling. Some of the most necessary tasks are the simplest ones, such as cleaning and decluttering all of your common areas, refreshing paint, curb appeal, and fixing any outstanding maintenance issues. 

Get Your Paperwork in Order 

Save time by filing as much paperwork as possible early in the process. For example, if you know you'll need a mortgage to buy your next home, get a pre-approval letter (or even better an approval letter) from your lender before you start shopping, and possibly even before you put your home on the market, so you can make your offer stand out to sellers and shorten the amount of time it takes to process your loan. 

We also recommend getting together documentation about your current home such as appliance warranties, renovation permits, easements and repair records. This way, you're ready to provide quick answers to buyers' questions. 

Ask For Contingencies That Can Benefit You

As we mentioned, part of our job is to negotiate favorable terms on your behalf. In some cases, this means including contingencies with your purchase offer. For example, it’s possible to add a contingency that allows you to cancel the contract if you haven't sold your previous home within a certain time. There are many contingencies  you can ask for before going under contract, but be careful not to ask for too much in a competitive market. We’re here to advise you on what’s appropriate based on the house and current market conditions. 

Know You’re In Good Hands!

It’s easy to worry about getting every little detail right with your home sale and housing search, but releasing control to your real estate team and trusting us to work everything out––even if there are bumps in the road, is the best thing you can do. Our team has the proven experience to get the results you’re looking for without the drama. So don't be afraid to lean into us throughout the process! 

Buying and selling a home at the same time can be challenging, but it’s not impossible. The key is to educate yourself about the market and prepare for multiple scenarios. 

Thinking of listing your home? Contact us for a free consultation so we can help you review your options and decide the best path for your unique situation. 

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