What are the three steps to buying and selling a home at the same time?
First, call a real estate agent so they can do a market analysis and give your home a value estimate. That will lay the foundation for what kind of equity you have to work with and help you determine if you can afford to buy a home before you sell your current one.
The second step is to talk to a trusted mortgage advisor to determine what mortgage financing options are out there for you and you can know what your down payment and closing costs expenses will be (or your cash outlay) when you make your purchase.
Third, reconsult with that same Realtor and give them the information you received about your down payment and closing cost expenses so you can compare it to the equity you have in your current home.
From there, you can make a final decision about what to do. There are two main options you can choose from.
The first is to buy a new home before selling your current one. Typically, you’ll use the equity in your home to cover the down payment and closing costs expenses.
Your next option is to sell your current home before you buy your next one. If you do this, your Realtor might advise you to add a contingency to the listing that makes the sale contingent on you finding suitable housing. This will ensure you’re not left without a place to stay in between transactions.
Hopefully, this gives you some context on buying and selling at the same time. If you or someone you know has any questions about this or any other real estate topic, don’t hesitate to give me a call or shoot me an email. I’d be happy to help you.