5 Things You Shouldn't Do When Buying & Selling At The Same Time
It isn't uncommon for property owners to buy new homes before selling the ones that they currently live in. However, this may present a series of challenges that might jeopardize your ability to acquire new property in a timely and affordable manner. Let's take a look at some of the mistakes that you'll want to avoid making while attempting to buy and sell a home at the same time.
Make Sure That Your Home Is Ready To Be Sold Quickly
You'll want to repair the roof, paint the living room, and get rid of excess clutter before putting your home on the market. It is also a good idea to take quality photos of the home that can be used for an online listing. Ideally, you will hire a real estate agent who can provide more insight into how you can attract buyers as soon as your home is listed for sale.
Use the Same Agent for Both Transactions
Using the same agent for both transactions can make it easier to complete both of them in a timely and straightforward manner. This is because the person representing you knows what your needs are and how to address them. Furthermore, it provides the other parties involved in these deals with a single person to call if they have any questions. Having one point of contact can minimize the risk of a communication error scuttling either transaction.
What Happens If You Can't Close on Both Transactions Simultaneously?
It's a good idea to assume that you won't be able to sell your current home on the same day that you take possession of your next property. In such a scenario, you would be responsible for paying maintenance, mortgage, and other costs for two homes over a period of several days, weeks, or months.
Will You Be Allowed to Carry Two Mortgages Simultaneously?
In most cases, banks won't lend to borrowers who have a debt-to-income ratio of more than 36% after taking a mortgage payment into account. Therefore, failing to sell your house before buying your next one may jeopardize your chances of getting financing. This may be true even if the lender knows that you aren't planning on keeping both homes over the long-term.
Don't Schedule a Closing for Friday Afternoon
Scheduling a closing on a Friday can be a bad idea because it can be several days before you see the proceeds from the sale in your bank account. Furthermore, many banks won't process transactions completed after 3 p.m. until the next business day. Therefore, try to close the first leg of the deal on a Monday morning if you want to close the other leg of the deal in the same week.