Navigating the process of buying a new home while selling your current one can feel like a balancing act. Many homeowners worry about selling too soon or missing out on the perfect new home. This common scenario can lead to what we call “Worried Sellers” — those caught between selling and buying, unsure of how to move forward. Fortunately, with the right strategy and expert guidance, you can take the necessary steps to secure your dream home without sacrificing the best possible sale price for your current property. In this blog, we’ll guide you through the process, outline our proven strategies, and offer tips to help you confidently buy and sell simultaneously.
Why Timing Matters: Balancing Selling and Buying
Homeowners need to remember what is most important in this transaction: getting the most money for your home and buying the property you truly want for the best price you can. In many cases, homeowners aren’t always able to qualify for a mortgage on a new home until they sell their current one. When sellers hear that, they often say: “But what if I can’t find the home I want? I can’t list my home until I find the home I want to buy!”
The reality is that waiting to list your home until you find your next one can often create challenges. In a competitive market, homes sell quickly, and if your dream home becomes available but you’re not prepared to make a move, you risk missing out. Timing becomes crucial because being proactive can give you the best chance at both selling and buying successfully.
Listing your home while house hunting can put you in a stronger position. Sellers are more likely to take your offers seriously if your home is on the market, and securing a buyer for your current property can enhance your negotiating power. This flexibility allows for options like leasebacks or extended closing timelines, giving you more time to find your ideal new home. With today’s market conditions, sellers have more leverage due to supply and demand. Having your REALTOR® negotiate with buyers can further support a flexible closing date to accommodate your next purchase. While balancing selling and buying can seem stressful, planning ahead and trusting an expert REALTOR® can make the process smoother and more rewarding.
Can You Make an Offer BEFORE Listing Your Home?
The answer is yes, of course, you can try, but nine times out of ten the sellers will reject your offer due to the potential repercussions of that large contingency. The only time we see an exception to this is if the buyer is willing to pay more than anyone else, and even then, the sellers are unlikely to accept because of the risk on their end. The strongest offer (which generally tends to be without this contingency) tends to be accepted, even if it’s not for the most money.
As a result, some people get stuck in a cycle: they wait to list their current home until they find one, they want to buy, but they can’t buy that new home until their own home is sold. They become what we call Want-to-be-Sellers.
Breaking the Cycle: Steps to Sell and Buy with Confidence
- Find an EXPERT REALTOR® and develop a plan: As an agent with Lamacchia Realty I do this every day, and I know how to do it successfully no matter the market!
- Don’t wait to start your home search: Start searching for your new home in earnest and try to really narrow down where you want to buy.
- List your current home: Your REALTOR® will be able to provide you with expert tips to help your listing stand out amongst the rest!
- Accept a strong offer on your current home: Be sure that this offer includes a contingency to protect you, so you have enough time to find suitable housing.
- Make an offer: When you officially accept the offer on your current, then and ONLY then, should you make an offer on the home you want.
It can sound a bit scary, but this method is recommended and is fairly standard with buyers who also need to sell. In fact, it is the exact order in which most people do it!
Tips to Avoid Temporary Housing and Protect Your Timeline
- Research where you want to live, so when the right house comes on the market, you can be ready to strike.
- Add a disclosure on your listing that says any sale will be “subject to seller finding suitable housing”
- Negotiate a closing date as far out as possible, preferably 90 days, to give you more time to find a home to purchase.
- You can offer to pay the buyer’s rent for a certain period of time after closing, known as a rent back, in the event that the closing on your new house is delayed.
- Sellers always have the option to not accept any offers if they don’t meet their needs.
Timing Is Everything: Why Winter and Early Spring are Ideal
Be sure to consider the time of year. This process can be done in any month, but winter and early spring is often the best time to start. Why? If you list in the winter, when the inventory is lower, you will sell for more. By the time you need to find a home and make an offer, it will probably be spring, when more and more homes are being listed for sale.
Overcome the Nerves and Take the Leap!
I understand that navigating these uncertainties is nerve-racking for homeowners. While it’s impossible to eliminate every risk, listing your home first is often the best move if you can’t buy before you sell. Taking this leap of faith could lead to getting the most for your current home and finding the perfect place for you and your family. If you’re ready to take the next step or need guidance, contact me today. I’m here to make your transition as smooth and successful as possible.