5 Mistakes Made When Buying and Selling Simultaneously

Dated: 08/01/2020

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5 Mistakes Made when Buying and Selling Simultaneously

It's a situation many homeowners find themselves in at some point - needing to buy and sell a home simultaneously. Lining up the sale of your home with the purchase of another can be incredibly challenging. However, with an experienced realtor by your side it is possible to line up both sides of the equation. Learn about 5 most common mistakes made when buying and selling simultaneously - and do your best to avoid them!

Unrealistic Searching

One of the most common mistakes is one that plagues first-time homebuyers as well. When searching for homes, it can be easy to start looking for bigger and better than what you can realistically afford. It's quite easy for your price range to slowly tick upward. One of the best ways to avoid this mistake is to go through the pre-approval process, and then to stick firmly to a reasonable budget derived from that pre-approval.

Leaving too little of a cushion

The first mistake is often compounded by the second common mistake. Sellers will often make an offer on another house that leaves too little of a cushion on the sale of their own. If you're planning on using the proceeds from the sale of your house for the down payment on the house you're buying, you will need a cushion in the pricing of your home. You should not expect to get the list price for your home. If you offer expecting a full price sale of your own home, you may find yourself short when it comes time for the down payment. It is much better to err on the side of caution, leaving a large cushion that allows you to negotiate the price on the sale of your home. Best case scenario, your home sells higher than you planned for and you end up with a lower than expected monthly payment!

Unwilling to compromise

Buying and selling at the same time can be extremely stressful. However, you must remember that both the buyer of your home and the seller of the home you're moving to are in stressful situations as well. Compromise is necessary in both the selling and buying of a home. If you're unwilling to budge on inspection findings, timelines or prices on either side of the deal you could end up with one or both sides falling through.

Using more than one agent

Buying and selling a home is a complicated process with a great deal of paperwork. That's why a realtor is so critical! If you're trying to line up the timelines of a purchase and a sale, it is very helpful if you are using the same realtor for both ends of the deal. This will help streamline the process and create a greater likelihood of everything going through when you want it to go through.

Choosing the wrong closing date

If you're using funds from your sale on the down payment of your purchase, you may need to allow a few days between the two closings to allow for funds to transfer. Because the transfer of funds sometimes takes longer than expected, it is usually not wise to schedule a closing on a Friday. Closing on a Friday means your closing could be delayed three days instead of one.

If you're navigating both the sale and purchase of a home you will want an experienced guide to help chart a straight course! Talk to Augustedge today for a smooth and streamlined process.

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Tricia McCullough

From farming in Warden, WA, to living in Australia and then back to Wenatchee, I’ve always been profoundly aware of the fundamental need to help others. Whether through their financial picture or he....

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