real estate<\/a> inventory is increasing or decreasing in your area. It might also be useful to do some general research into the health of the economy by looking at inflation rates, interest rates, and the overall economic outlook.<\/p>\n[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” background_color=”#edf7f3″ custom_padding=”32px||32px||true|false” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on” da_disable_devices=”off|off|off”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” header_2_text_align=”center” header_2_text_color=”#38505b” header_2_font_size=”2.63rem” header_2_line_height=”3.75rem” max_width=”800px” module_alignment=”center” header_2_font_size_tablet=”32px” header_2_font_size_phone=”27px” header_2_font_size_last_edited=”on|phone” header_2_line_height_tablet=”3.75rem” header_2_line_height_phone=”32px” header_2_line_height_last_edited=”on|phone” global_colors_info=”{}”]<\/p>\n
\u201cOne advantage of buying a home first is that you won\u2019t need to find a place to live while you\u2019re \u2018between homes.\u2019 One advantage of selling your home first is that you won\u2019t have to include a home sale contingency with your offer, making it more attractive to the seller.\u201d<\/h2>\n
[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”||24px||false|false” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on” da_disable_devices=”off|off|off”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”23px||38px|||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” text_font_size=”21px” text_line_height=”1.6em” header_2_font=”||||||||” header_2_font_size=”36px” header_2_line_height=”1.3em” header_3_font_size=”1.25rem” header_3_line_height=”1.88rem” header_4_font=”|700|||||||” header_4_font_size=”1.25rem” header_4_line_height=”1.88rem” global_colors_info=”{}”]<\/p>\n
3. Make sure you qualify for a mortgage loan<\/b><\/h3>\n
Before putting your home on the market, make sure you qualify for an adequate mortgage loan. The first step is getting pre-approved for a mortgage. Whether you go through a mortgage broker or bank, be sure to gather the necessary documentation for pre-approval. It\u2019s worth noting that if you decide to buy a new home first, you may be responsible for paying two mortgages at once. This will not only be a major financial burden but it could also impact your debt-to-income ratio, making it harder to qualify for a new mortgage. In addition, there may be penalty fees for paying off the mortgage on your current home early. That said, your mortgage lender might agree to transfer your existing mortgage to your new home, so make sure to speak with your mortgage lender about this possibility.\u00a0\u00a0<\/p>\n
–<\/span><\/p>\n4. Obtain a bridge loan<\/b><\/h3>\n
Obtaining a bridge loan is a useful tip if you buy a new house before the closing date of your original home. If you find yourself in this situation, you may not have the funds to cover the down payment, earnest money deposit, property taxes, legal fees, and all the other out-of-pocket expenses that come with buying a home. In this case, a bridge loan could be a great option. Some mortgage lenders offer financial aid in the form of bridge financing, which is a short-term loan that helps homeowners cover the costs while they\u2019re between homes. Once your old home is sold, you can use the proceeds to pay off the bridge loan, along with any interest.\u00a0<\/p>\n
–<\/span><\/p>\n5. Include a home sale contingency<\/b><\/h3>\n
Purchase agreements include a wide range of conditions. These conditions are designed to protect buyers, but some might be more important than others when attempting to buy and sell a home at the same time. While conditions for home inspections are commonplace in most home sales, there is one type of contingency that is a must if you are buying a new home before your old one is sold, and that\u2019s a home sale contingency. Sometimes referred to as a contract contingency, this condition stipulates that the deal will only go through once your old home is sold. In essence, buying your new home hinges on your old home being sold. This contingency provides peace of mind to buyers. However, it doesn\u2019t offer many benefits to sellers and they could refuse to accept the contingency (and are likely to do so in a hot housing market). That said, although a home sale contingency might weaken your offer, it is a way of protecting yourself from the financial burden of owning two properties at the same time.\u00a0<\/p>\n
–<\/span><\/p>\n6. Co-ordinate closing times<\/b><\/h3>\n
With proper planning and communication, you might be able to achieve the ideal: co-ordinated closing times. Closing on your current home and your new home around the same time is usually the best-case scenario. Remember that banks typically only need two to three days to transfer funds. So you could theoretically sell your old home and buy your new one using the proceeds within a few days of each other. To successfully co-ordinate closing times, do not schedule your closing for a Friday or late in the day. Always aim for early in the week and early in the morning.<\/p>\n
[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.24.2″ _module_preset=”default” min_height=”35px” custom_padding=”0px||0px||true|false” da_disable_devices=”off|off|off” global_module=”1002″ saved_tabs=”all” locked=”off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”54px||48px|||” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on” da_disable_devices=”off|off|off”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” text_font_size=”21px” text_line_height=”1.6em” header_2_font=”||||||||” header_2_font_size=”36px” header_2_line_height=”1.3em” header_3_font_size=”1.25rem” header_3_line_height=”1.88rem” header_4_font=”|700|||||||” header_4_font_size=”1.25rem” header_4_line_height=”1.88rem” global_colors_info=”{}”]<\/p>\n
7. Include a rent-back contingency in the purchase agreement<\/b><\/h3>\n
Another tip for buying and selling at the same time, especially if you plan to sell before buying, is to ask the new owners if they would be willing to rent it back to you. Some buyers are willing to rent the home back to the previous owners for a period of 30 or 60 days after the closing. This is referred to as a rent-back contingency. A buyer does not have to agree to this, but if you have yet to buy your new home, a rent-back contingency could offer an appealing solution. With this option, you could theoretically continue living in your old home right up until you move into your new home. This eliminates the hassle of trying to find a temporary place to live or having to put your belongings into storage. The only drawback to this option is that you would be on a tight deadline (as mentioned, rent-back periods are usually 30 or 60 days), and if you can\u2019t close on a new home in this time, you\u2019d be forced to move.\u00a0 \u00a0<\/p>\n
–<\/span><\/p>\n8. Prepare the necessary paperwork in advance<\/b><\/h3>\n
Let\u2019s face it, any time you sell a home or buy a new one, there\u2019s a lot of paperwork required, ranging from mortgage documentation to the records needed on your current home. To make the process as stress-free as possible, gather the necessary documents as early as possible. Before you\u2019ve even put your old home on the market, speak with a mortgage lender and find out what information you need to provide. In addition, create a file on your computer with all the documentation for your current home. This may include renovation permits, repair records, appliance warranties, property tax bills, utility bills, and more.\u00a0<\/p>\n
–<\/span><\/p>\n9. Carefully consider the price of your next home<\/b><\/h3>\n
Before listing your current home, think carefully about how much you can afford to spend on your new home. This, along with market conditions and the market value of your home, will help you determine an appropriate listing price. (Bonus tip: having your home appraised before putting it on the market can also help you determine the ideal listing price.)\u00a0<\/p>\n
\u00a0–<\/span><\/p>\nFor example, if an appraiser values your home at $800,000, and you know that your new home is $750,000, then that is your bottom line (the lowest purchase price you would be willing to accept on your current home is $750,000). In an ideal world, you would never accept less for your current home than you plan to spend on your new home. However, this isn\u2019t always possible, especially if you\u2019re moving to a pricier neighbourhood or looking for a larger home after living in a condo or townhouse. In some cases, the market might also be slow, making it unlikely that you\u2019ll get $750,000. If this is the case, you should reduce the budget for your future home accordingly. Ultimately, homeowners should strive to completely cover the purchase of their new home with the proceeds from the sale of their old home.\u00a0<\/p>\n
–<\/span><\/p>\n10. Work with one REALTOR\u00ae for selling and buying\u00a0<\/b><\/h3>\n
Our final tip for buying and selling a home at the same time is to work with one REALTOR\u00ae. Buying and selling simultaneously is already going to be a complicated process. Don\u2019t make it more complicated by working with separate REALTORS\u00ae. Beyond convenience, the more you work with a certain REALTOR\u00ae, the greater understanding they will have of your home preferences and budget. In turn, this will make them a better advocate and will increase the odds of selling your current home at a satisfactory price and finding a new home you love.\u00a0<\/p>\n
\u00a0–<\/span><\/p>\nPlease note that working with the same REALTOR\u00ae only works if you are selling and buying a home in the same place. If you\u2019re moving to a different city or province, you will be better off finding a REALTOR\u00ae locally in each place.<\/p>\n
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