How to Buy and Sell a House at the Same Time 

In a perfect world, moving would be as simple as buying the house of your dreams, immediately selling your current home, closing on both, and moving on the same day. However, more often than not, the process is rarely that easy. Multiple parties, financing, and inspections are just a few of the complexities that can throw things out of sync.

So, is it possible to buy and sell a house at the same time? Or is it better to focus on completing one property transaction at a time?

Should you buy or sell first?

With detailed planning and the right financing strategy, it is possible to time the sale of your current house and a new home purchase in a way that works for you. But this question really comes down to whether you can, or should, buy before you sell. After all, that would allow you to sell quickly, avoid multiple moves, and avoid paying for temporary housing, too. It also puts you in a position to shop around for the perfect place without the added pressure of moving out of a home you have already sold.

Other schools of thought propose that selling your home first is the way to go so you can avoid being stuck with two separate mortgages at once. At the end of the day, it comes down to what strategy you are comfortable with and able to afford.

To help you determine which route is best for your situation, here are the pros and cons you need to know about buying and selling in tandem:

Pros of buying before selling

• No pressure to move out of your current home before you are ready
• More time to plan your current home’s pricing and prepare it for staging before home tours begin
• Avoid the need for a short-term rental and added moving costs

Cons of buying before selling

• May cause financial strain as you will be responsible for paying for two mortgages at once
• Risk of property prices dropping before you are able to sell
• Pressure to sell the home may lead to rushed decisions or poor negotiating strategies

Pros of selling before buying

• Ability to use the proceeds from the sale of your current home toward buying a new one
• Avoid the financial strain of paying for two mortgages
• More flexibility to take your time and pick an offer you are satisfied with

Cons of selling before buying

• Property costs may increase in the time it takes to close on the sale of your current home
• May need to find temporary housing, adding to your costs
• Rushed purchase decisions if your home sells and you need to quickly find a place to live

Four tips for buying and selling a home at the same time

You do have options available to make the buying and selling process more seamless. Here are some tips for buying another house before, or while, selling your current home:

1. Take time to evaluate the current housing market.

Are you going into this process during a seller’s market, when inventory is low and you are likely to quickly receive multiple offers and get top dollar for your current house? Or is it a buyer’s market, in which selling can be slower and less profitable, but you may land a deal on your new place? Your strategy will depend on what is happening in the local housing market, often driven by our country’s economy as a whole.

2. Hire an experienced real estate agent.

While the question, “Do you need an agent to buy a home?” can be up for debate, hiring a trusted real estate agent is imperative to keeping your buying and selling timeline on track. Your agent will act as a guide throughout the entire process. They can help determine a listing price for your current home, provide a list of new homes you may be interested in, and assist during negotiations. It is important to take your time interviewing agents so you can be sure you are hiring someone who has your best interests in mind and has experience handling dual buying and selling processes. However, keep in mind your real estate agent is only one aspect of your homebuying dream team.

3. Analyze your current finances before deciding on a strategy

Understanding your finances is vital to your buying and selling game plan. The cash you have readily available, the amount of equity in your home, and the type of mortgage you have and are interested in will all be factors in determining a timeline and financing plan that works best for you. For example, if you have built up equity in your home, you may want to consider tapping into it before selling. A HELOC, home equity loan, or cash-out refinance can let you borrow against that equity and use the funds for your new home’s down payment—then you can pay it off when the home sells. Additionally, some lenders offer a mortgage bridge loan that uses your current home as collateral to secure funding for a down payment on your new house purchase. Be aware that bridge home loan rates are generally higher than other financing types, and terms are typically limited to between 6 and 12 months. A good lender will help you weigh your options to decide what choice makes sense for you.

However, based on your current financial situation, it may make more sense to sell your house first and put those funds toward buying your next home. If you are considering putting an offer on a house before selling yours, start months in advance with a careful look at your budget. Regardless of which route you decide on, a strong financial foundation will put you in the best position possible.

4. Be ready to renegotiate your buying and selling timeline.

When it comes to selling your home, it is natural to want to hold out until you get the best possible offer. However, when you are also juggling buying a house at the same time, it is important to remember that you are not simply negotiating the money, but also the timeline of both transactions. Closing dates can be one of the most important details in your sales negotiations. While it is not always possible to schedule both closing dates on the same day, it is typically possible to arrange for adjacent closings and include contingencies that protect you from financial hardships.

For example, you may be able to set up back-to-back escrow and ensure that the proceeds from your home’s sale immediately go toward the new house purchase. As a buyer, you can also consider adding a home sale contingency to your purchase agreement. This stipulates that a buyer is not required to follow through on a home purchase if they are unable to sell their current primary residence. As a seller, you may want to ask the buyers to do a rent-back agreement that allows you to remain in your current home for a short time after closing until you are able to secure a new home.

Discuss all of your options with a trusted lender

It is possible to buy and sell your home at the same time. However, it is important to look at your unique situation and determine whether buying first or selling first might be best for you if the timing does work out perfectly. Remember to consult with your lender to determine which options are viable for you.

Researching the market, organizing your finances and documents, and building your budget will go a long way in setting you up for homebuying and selling success. Good luck!