Imagine this scenario: You find the home of your dreams. You want to make an offer before another buyer arrives. But there’s just one problem…
You haven’t sold your old home yet.
What you’ve encountered is the catch-22 of real estate. This is a dilemma people can run into when they own a home and want to buy another home.
If you buy first, you get stuck with two homes, two mortgage payments, and taxes on two properties. This is a situation most people can’t afford.
If you sell first, you can end up with no home at all. That forces you to rush into a home purchase, rent, or move in with family. None of these are easy situations.
So, how do you avoid getting stuck with two homes or no homes? Thankfully, you have strategies to employ when buying and selling a home at the same time.
Here’s what you can do to solve the catch-22 of real estate:
How to sell your home while buying another: Prepare financially
If you’re buying and selling a home at the same time, you’re not alone. 65% of home buyers are buying a home for at least the second time, according to the National Association of Realtors.
So, many folks are buying and selling a home at the same time. However, not all achieve success. Many get caught in the catch-22.
The fact is this: Buying and selling a home at the same time requires good timing. If you can’t buy a new home before selling the old one, or sell the old home before buying a new one, you get stuck.
Living with the in-laws or paying two mortgages? Neither sounds like a good time!
But don’t panic. With proper financial planning, you can potentially solve the catch-22 of real estate.
As a report in Money notes, make sure to cover yourself. While these methods aren’t failproof, you can try the following:
Start the process as early as possible. The earlier you begin, the more time you have to approach things right when it comes to buying and selling a home at the same time. Don’t rush yourself—because it can lead to bad decisions.
If you haven’t sold your old home and therefore don’t have the funds for a downpayment on the new home, you could open a home equity loan line of credit to meet the 20% downpayment requirement to avoid mortgage insurance. Simply pay back the home equity loan or line of credit after you sell your old home. This may cost you a bit more, but it saves you from not having money for a home you really love.
Make a bid on a new home contingent on selling your old home. Unfortunately, in hot markets, this won’t be effective as another buyer will make an offer. And the seller won’t wait for you.
Apply to qualify for two mortgages. Unless you sell your home first, you must qualify for two mortgages and have the funds to make a 20% downpayment on the new home (if you want to avoid mortgage insurance). If you have the income and savings to support two houses, then it won’t bother you. However, this isn’t the best-case financial scenario, and you may get stuck with less cash flow than you’d like.
As you can see, these strategies may not deliver you the results you want. But they give you options.
Still, what if they don’t work? What should you do?
How to sell your home while buying another: Partner with the right people
No matter how well you prepare your finances, external market realities can still get you trapped with two houses or none. If you want to truly learn how to sell your home while buying another, you must hire the right real estate agent.
That means partnering with an expert who’s committed to your success as a buyer and seller. Your real estate agent should have a clear path and timeline for pricing your home for a quick sale and maximum profit, as well as helping you find a suitable new home.
For instance, at DLP Realty, we go the extra mile to solve the catch-22 of real estate. It begins by answering all your questions and concerns and laying out a plan for success based on your needs. We help you every step of the way so that you don’t get stuck buying a new home before selling the old one, or vice-versa.
To sell your home successfully, your real estate agent should guide you through pricing, marketing, showings, and negotiations, being sure your needs are prioritized each step of the way. The same goes for shopping for a new home. This enables you to make the entire process more efficient and ensures you make the right decisions.
Finally, when looking for a real estate agent or company, partner with those who have backup plans to guarantee your success. After all, it’s not always possible to time buying and selling a home at the same time in the general market. But you actually can make it happen with innovative solutions and the help of the right real estate pros.
How to sell your home while buying another: Use DLP’s innovative solutions
Preparing your finances well, starting the process early, and partnering with the right people can potentially solve the catch-22 of real estate. However, those strategies won’t always work, whether that be due to external market forces or a personal situation that limits your time
Fortunately, DLP Realty has come up with ways to eliminate the catch-22 of real estate completely. We achieve this through three innovative home-buying and home-selling solutions, ones that aren’t susceptible to other forces. These include:
DLP Realty Guaranteed Sale Program: Want to sell your home within 34 days? We guarantee it through this program. We’ll evaluate, list, show, and sell your home within 34 days. If we can’t sell your home in that timeframe, we’ll buy it. It’s that simple.
DLP Realty Immediate Buyout Program: Afraid to get caught buying a new home before selling the old one? We have a solution. We’ll give you an immediate cash offer for your home with closing in as little or as much time as you need. No showings. No repairs. No hassle!
Trade-Up Program: Wish to upgrade to a new home? Buy a home with DLP Realty, and we’ll buy yours. This allows you to focus on what matters: Finding your dream home.
What’s even better with these solutions is clients actually save money. That’s because there are no inspections, no commissions, no closing costs, and we offer the flexibility of closing at your convenience. You can take as much or as little time as you need.
Sell your home and buy another with no hassles
You now know how to avoid the catch-22 of real estate. It begins with taking care of your finances, starting the process as early as possible, and partnering with the right real estate agent. It also involves having tangible strategies to get offers on your home, from marketing plans to immediate buyout solutions.
If you’re buying and selling a home at the same time, protect yourself from a catch-22 by following the failproof strategy we’ve discussed. And learn about all of DLP Realty’s programs that can help you get an offer on your home—and find you a new home.