There are many instances in life when we have to acknowledge it’s all about the timing. When it comes to buying a new home at the same time as you sell your old one, that is definitely an “all in the timing” situation. Still, to help make the balancing act a little easier, we asked Saussy Burbank agent Kim Claxton “how to sell and buy a house at the same time.” An edited transcript of the discussion follows.
Buying a house can already be challenging; selling one is often stressful too. So, what would be the advantage of selling a house and buying a new one at the same time?
By selling and buying at the same time, you don’t have to find short-term housing, move twice, or carry two mortgages.
Selling a house and buying a new one simultaneously isn’t easy. What are some of the biggest challenges the homeowner could run into?
The top ones are timing and financing! As an agent, part of my job is helping people find the right Saussy Burbank house available to buy at the same time as they sell and close on their existing house. That can mean showing them recently built properties and having candid conversations about how long it takes to buy and build a house.
Funding the new house when you still have a mortgage on the old house can be a stumbling block. What have you seen buyers do to smooth out this wrinkle in the process?
A lot of people choose to do a back-to-back closing. Also known as a simultaneous closing, this is when you buy the new home on the same day you sell your old one. This means you can transfer the money from the sale to purchase the new home almost immediately.
Another option could be getting a bridge loan. This is a short-term bank loan to cover your down payment, just until your sales close. However, not all banks offer this, and getting qualified can be difficult.
There are also some companies that will buy your house for cash, although you may not get full market value going that route.
The logistics of selling and buying at the same time can be tough. What can a buyer do working with Saussy Burbank to at least make the buying of the new home process go more smoothly?
Apply for a loan immediately after contract even if the house won’t be complete for a while to make sure the loan process goes smoothly. It also helps to make your design selections on time so the house can stay on schedule.
How would the fact that someone is buying and selling a home at once change the process of buying a home with Saussy Burbank?
The buyer would disclose on the Saussy Burbank contract that they had to sell to buy and have a contingency addendum. A sale and settlement contingency says you’ll buy the home only if you can successfully sell your existing home. However, that means we’re still able to hear other offers (so, it’s safer to take this route in a buyer’s market).
Saussy Burbank typically only accepts contingency offers if the existing house is under contract. That way it’s just contingent upon the sale closing.
What should the buyer do to avoid getting “bumped” by a non-contingency offer?
The buyers can provide the contract on the home they are selling to Saussy Burbank along with their purchase contract and speak with one of our preferred lenders. It can help also to provide comparable sales for the home you are selling as well.
What is the advantage of working with Saussy Burbank and buying a new-built home when trying to buy while selling an existing home?
When you’re looking at a resale house, the sellers typically want to close quickly, within 30-45 days. You can request an extended closing, but in a seller’s market, they’ll likely just go for another offer.
When you’re working with Saussy Burbank and the construction of one of our high-quality homes, you have a clear timeline to work with as you work to sell your home.
What other advice might you offer to those looking to buy and sell at once?
Make sure your house is ready to list before purchasing. Don’t wait to start decluttering!
Also, apply for your mortgage right after signing the purchase contract to make sure there are no hiccups getting the loan.
The process of buying and selling is emotional and stressful, but we will help guide you throughout; being in a beautiful new Saussy Burbank home will be well worth it.
McNeill Burbank is now a separate, independently owned and operated business. If you wish to visit the McNeill Burbank website and learn more about their exciting communities in Raleigh, NC please click below.