Whether you're buying a home or selling one, there are plenty of logistics to juggle and things to keep in mind. Doing both simultaneously can be a balancing act that takes finesse, patience and flexibility. Plenty of people do it though, so here are some suggestions to make it work.
Keep Two Properties
While having two properties at the same time might be difficult financially, it's probably a short-term solution. You'll be able to stay in your current home while you make offers on a new one without worrying about adding a contingency clause or looking for a rental.
Sell Your Old Home First
If you want more options financially, selling your old home first before purchasing a new one makes the most sense. You'll know how much money you have available to buy the new home. That being said, it's likely to result in the inconvenience, stress and expense of having to move at least twice in a short amount of time.
One way to avoid doing so is to negotiate the settlement date so that it's the same as the closing on your old home. Doing so will allow you to move from one to the next without interruption. If matching your settlement dates is important to you, try to be flexible with a part of the contract that's important to the other people involved.
Another option is to approach the buyer about renting your old home back to you until you are able to move into your new home. There is always the possibility that the new owner is also trying to finesse their own plan of buying and selling a home and that you renting your old home won't work though.
The final option is also the one that is the most expensive and inconvenient. You can look for a short-term rental to live in until you're able to move into your new home. You might also have to find some storage options for your belongings if you aren't able to find a large enough rental.
Buy Your New Home First
The most challenging method is to buy your new home before you've sold your old one. That being said, it's not impossible to pull off, but it does mean you'll have to juggle your finances a bit more.
Including a home sale contingency gives you a certain amount of time to sell your current home before the purchase of your new one moves forward. If the end of the time period arrives and you still haven't been able to sell your old home, you can either back out of the purchase or try to negotiate for more time.
It's worth mentioning though, that many sellers don't like this type of contingency. It doesn't provide them with the reassurance that you'll actually purchase the house. Including one could also weaken your offer if it's compared to someone else's.
The need to buy and sell a home at the same time isn't all that uncommon. With some creative planning and a bit of luck, you could manage the juggling act and wind up with exactly what you want.
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