Sara Wines

Educating and Empowering Home Sellers and Buyers

Buying and Selling at the Same Time:

Three Steps to Consider Before Making an Offer

by Sara Wines

Trying to buy your next home while selling your current one can be one of the most stressful moves you'll make in real estate. Coordinating both transactions requires perfect timing, financial flexibility, and backup plans for nearly every scenario. If you can avoid doing both at once, it’s often the better—and less overwhelming—choice. But if it’s unavoidable, take time to prepare thoroughly so you're not caught off guard by the challenges ahead.

A few things to know about buying and selling at the same time:

When your ability to buy a home depends on selling your current one—or vice versa—your offer is considered contingent because it relies on another transaction.
When you make a contingent offer to buy a home, the seller is usually allowed to keep showing the property to other willing and able buyers. If another strong offer comes in and you can't move forward without selling your current home, you could lose the deal.
If you sell your current home without making the sale contingent on finding a new one, you risk being left without a place to live if you can’t secure your next home in time.

1. Do you have to buy and sell at the same time?

If you can avoid buying and selling at the same time, skip it! You will save yourself a lot of stress, and you will be a more competitive buyer when you do find your dream home. Talk with a few lenders to know what options you have. Securing a loan to purchase your next home before selling your current one can give you much more flexibility and control over your timeline. Once your current home sells, you can then use the proceeds to pay down or pay off the loan and move forward with less pressure. Even if taking out a second loan isn’t your preferred option, it’s important to know whether you can qualify for one—especially if your dream home hits the market and you need to prove you’re financially ready to buy right away. Work with a skilled agent who has experience with this situation to prepare a back up plan (or two)!

2. Assess your readiness to sell your current home.

If you do decide that you have to buy and sell at the same time, it is critical that you understand the market and how quickly (or slowly) properties are selling. You will want a skilled agent to help you understand if your area is currently in a buyer's market (where many properties are listed for sale and sellers have to be competitive) or a seller's market (where few properties are listed for sale and buyers have to be competitive). Depending on the type of market you find yourself in, you may have prepare to be competitive with your pricing and marketing so you can attract buyers faster. An agent with their eye on the market should be able to help you understand what comparable properties are (and aren't) selling for and how long they are on the market before selling.

Remember that a buyer may ask for the keys the day that you close on the property. Know what the shortest amount of time that this could be from list to close so that you can anticipate if you can pack up and move that quickly. It is possible that a buyer would agree to let you rent back the home a few days or even a week after closing to move, but not every buyer will agree to this and it would likely be for a short time even if they did. If you are a long way from being ready to move, take some time to declutter and slowly back if you can before hitting the start button on these transactions.

3. Anticipate closing costs when determining budget.

Only after you have given all three steps above deep consideration should you begin the actual home search. Looking at houses before considering the three points above can lead to heartbreak and disappointment.

Page updated

Google Sites

Report abuse