How to Buy and Sell at the Same Time (Without Losing Your Mind!)

| Selling

Selling a home is never easy, even when the market is hot, the kids are out of school, and you’ve nailed that 100% work-from-home gig. For busy households, no matter why or when you decide to sell, you know it’s going to be smack dab in the middle of everything else you’re juggling.

In this post, we’re going to show you the best way to sell your current home and buy your next home “at the same time.”

Although it sounds like a lot more work, once you know why and how to do it, you’ll find it is possible to manage both without losing your mind!

Why You Should (and can!) Buy & Sell At the Same Time

A well-thought-out buy and sell strategy helps avoid losing money on your current home or overpaying on your new one by working in the same market conditions. When homes are selling for a high price, you can reap more profits BUT pay more for your next home, and when homes are selling for a lower price, you can find a real gem at a discount but see less profit on the home you are selling. So unfair. But is it? No! Regardless of the market conditions, buying and selling in the same market actually benefits you. Here’s why:

Say the market is down by 20% and your goal is to upsize your home for your growing family. If your $1 million home only sells for $800,000 but you buy a larger $1.5 million home at a 20% discount, although you’ll “lose” $200,000 on the sale, your $300,000 discount on your spacious new home provides a net gain of $100,000. Nice!

Looking for more tips for an outstanding home sale? Here are some more posts you might enjoy:

Recognize the Risks and Benefits of the Price Gap

You need to look at the price gap between the two transactions rather than the individual price to realize your losses or gains and avoid the stress of feeling you’re losing out. Selling in the same market ensures you make a “sideways move” financially, so you help balance out your profit and loss.

When you look at it from a profit standpoint, you really only stand to gain in a hot market when downsizing, as it gives you more money to invest in your smaller, more reasonably priced home. And remember, while it’s tempting to wait to sell when the market is hot, buying tends to be more stressful with fierce competition, higher listed prices, AND a higher risk of getting into some pretty intense bidding wars.

Now, it’s time for some tips for buying your next home. Get answers to a few of your questions in the posts below:

2 Birds, 1 Stone

Buying and selling a home at the same time takes advantage of the proverbial strategy of killing two birds with one stone. You can develop a plan with an experienced real estate team (like us!) to manage both processes so everything is finished within a few days (or weeks) of each other. Then all you have to do is focus on the excitement of having a bigger home in a better neighbourhood with better schools for the kiddos. You just need to know how to prep…

Preparing for Selling the Less Stressful Way

Since this isn’t your first rodeo, you already understand the basics of buying. Just be sure to speak to your bank to understand current rates, qualifying processes, etc. Then use our selling prep list to help reduce sellers’ woes:

  • Find a real estate team who knows your area early in your plans, so you have an effective selling and buying strategy.
  • Aim to list and sell your current home before you start shopping, so you understand exactly how much you have to spend on your next home.
  • Make sure you consider the costs for buying and selling, including covering the commission for both the buyer’s agent and yours (this is typically between 3% and 5%) and potential penalties on your current mortgage.
  • Create a targeted marketing strategy to outsmart your competition.
  • Trust your real estate team’s price strategy to ensure you are bang-on.
  • Have a showing strategy including staging, an open house, and managing scheduling challenges such as getting the kids out of the house to make tours more pleasurable so you can sell faster.
  • Aim for a longer completion/closing date to give yourself more time to shop for your new home.

With the right team of experts by your side, selling and buying a house all at once can be easier and more enjoyable than you ever thought possible. Learn more in the posts below:

Have a “Plan B” Finance Wise

Bridge loans offer an advance when you take possession of your new home before the closing date of your current home. With approved bridge financing, you won’t need to worry about covering your new down payment and closing costs, as you can access a short-term loan based on your current home’s equity.

Phew!

There’s your plan for buying and selling a house all at the same time! Do you want a high level of support at all stages of the process? Learn more about how the Christine Cowern Team can help by calling 416.291.7372 or emailing us at hello@christinecowern.com.