How to Sell and Buy another house simultaneously?

Hi, we’re getting a lot of clients asking us, how can they sell their house and buy another house simultaneously. Today, I’m going to be discussing the ideal situation, the steps you need to take to make that happen. Also, I’m going to discuss what challenges could come up during this process.

Welcome back to my video blog. In order to sell your house and buy another house at the same time in a perfect world. First step you want to do is actually talk to a loan officer to find out your status and how much your payment is going to be. Whether you also need to sell your house first in order to qualify to buy another home.

Also, a lot of buyers and sellers would use their equity from the house they would sell now. So they can use it as a down payment for the purchase of their home. Therefore, your first step is to talk to a loan officer to help you find out all the details on the financing side. Number two step, make sure you work with an agent that knows what they’re doing.

What I mean by knows what they’re doing. They have experience and they’ve dealt with situations like this. Simultaneous sales, where they can handle the sale on your house and help you purchase another home. It is doable. However, it’s not easy. To make sure to line all the steps accordingly. And the timing has to be perfect for you can move once only, you don’t have to move twice.

Number three, once you have the perfect agent help you, go ahead and list your home immediately. And you can start browsing for a house. However, you will not be able to submit a strong offer until your house goes into escrow. Therefore, once you have an offer on your house and you open escrow on the sale of your house at this point, number four, you can go ahead and submit offers on houses that you fain or you like, and you want to buy it.

And the main reason why is because when you send an offer, on the house that you want to buy, you will have a contingency in there that will say you will not be closing on this new house until your house is sold. So therefore you have to have your house in escrow to make your offer attractive to the seller of the house

you’re trying to buy. The contingency is there to protect you and to protect your deposit. What I mean by that is when you submit an offer to buy another house. The contingency specifically saying that I will not close on this house until my house is sold. Therefore, if the buyer on your house that’s buying your house could not close or fails to close, you will not move your deposit on the house you’re buying. At that point.

Unfortunately, if that does happen, you would go to square one. And basically if the seller of the house you’re looking to buy is willing to wait,then it’s great. You would have to find another buyer on your house and then close on both houses simultaneously. All these steps I’ve mentioned is the process of selling your house and buying another house

in the perfect world where the market is neutral. What I mean by neutral is where supply and demand are balanced. However, in today’s market, we have a strong seller’s market. What that means we have low inventory, less sellers than buyers. So what could go wrong with this scenario in this market? And you should watch out for. One, make sure you have enough time to close escrow on the house

you’re buying to give yourself time to sell your house in case the buyer you have canceled the deal. Number two, remember you have two escrows going at the same time, the escrow on the sale of your house and the escrow of the house you’re buying. Therefore both have to be coordinated together where everything works accordingly in a syndication without any mishaps or problems, therefore you have to be ready and your agents have to be able to help you to prevent any surprises that could come up.

Also, number three, make sure your agent is in direct communication with the other party of the house that you’re buying. They have to keep letting them know that everything’s going smooth. Communication is a key. So they’ll be at peace of mind that your house was going to sell. Therefore, you’re going to be able to close on that house on that escrow successfully. In some cases in a sellers market, when you’re submitting offers to buy a house with contingency, such as selling your house, that will make your offer very weak.

Because there’s multiple offers and the other buyers are sending offers with less contingencies than yours. If you put yourself in the seller’s shoes, you want the best buyer that has the least contingency to buy your house, therefore, to make your offer stronger, you have to be aggressive when you’re submitting an offer to buy another house, having a contingency to sell your house first.

What I mean by aggressive. Price is very important. If you go higher on the price, it will help you. Number two, if you could waive some of the appraisal that will also help you. And number three, you can offer to release some of your escrow money deposit after 15 days or 20 days. To make your offers strong and stand out compared to the other offers.

What I mean by releasing your escrow money deposit, that would be nonrefundable where you would give up some of your money, the deposit to the sellers, just to guarantee they will accept your offer over the competition. Now you do want to date it and make sure the timing is right before you released that deposit.

You want to make sure the buyer on your house did inspection and appraisal already. Where you can get to keep their escrow money deposit in case there are default. Therefore, if you give up your deposit to the house you’re buying, you’re going to be even, and this way you can protect both sides and look for your best interest to at the end of the day, make it a successful transaction.

We have dealt with a lot of clients, just like you looking to sell and buy at the same time, it could be a maze. Make sure you work with an agent that knows what they’re doing. If you have any questions for us, call us anytime for free consultation.

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