March 22, 2023 · Blake Sherwood

Options for how home owners can buy and sell at the same time

When buying and selling a home at the same time, there are several options that homeowners can consider:

1. Simultaneous closing: This involves selling your current home and buying a new one on the same day, with the proceeds from the sale being used to purchase the new home. This can be a bit risky because if either the sale or the purchase falls through, it can cause a domino effect of problems.
2. Sell first, then buy: In this scenario, you would sell your current home first and then use the proceeds to buy a new one. This approach eliminates the risk of not being able to sell your home and having to back out of the purchase of a new one, but it also means you may need to find temporary housing in between.
3. Buy first, then sell: This option involves buying your new home before selling your current one. This can give you more flexibility when it comes to timing, but it can also put you in a financial bind if you’re not able to sell your old home quickly.
4. Contingency offers: You can make an offer to purchase a new home that is contingent upon the sale of your current home. This can make your offer less attractive to sellers, but it can also provide some financial protection.
5. Bridge loans: A bridge loan can help bridge the gap between selling your current home and buying a new one. Essentially, a bridge loan is a short-term loan that allows you to borrow against the equity in your current home to make a down payment on a new one.