{"id":369453,"date":"2016-04-04T10:47:27","date_gmt":"2016-04-04T15:47:27","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/realestate\/selling-your-home\/buying-and-selling-a-house-at-the-same-time.html"},"modified":"2023-08-08T14:37:05","modified_gmt":"2023-08-08T19:37:05","slug":"buying-and-selling-a-house-at-the-same-time","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/realestate\/selling-your-home\/buying-and-selling-a-house-at-the-same-time.html","title":{"rendered":"Buying and Selling a House at the Same Time"},"content":{"rendered":"\n
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Buying and Selling a House at the Same Time<\/h1>\n
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\n By Olivia Wathne, J.D.<\/a> | Legally reviewed by Aisha Success, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

So, you’ve decided to buy a new home. Like many people, you may wonder if it’s best to sell your old house<\/a> before you buy your new home<\/a> or vice versa.<\/p>\r\n

If you buy a new property first, you face the consequence of paying a second mortgage while trying to sell your old home. If you sell first, you will need to find temporary housing. Either way, you might find yourself rushed on your decision, which could lead to settling instead of finding the dream home you envisioned, or paying more than you wanted to.<\/p>\r\n

If you find yourself in homeowner limbo, you can still have a smooth new home purchase. The tips below will help you understand your options before entering a confusing real estate market. An experienced real estate agent can also help you manage this tricky situation.<\/p>\r\n

Explore the Housing Market<\/h2>\r\n

You should get a feel for the housing market before you start house hunting. Your realtor can help you understand the market.<\/p>\r\n

You should compare home prices in the area you’re looking to buy<\/a> to similar home values where you are now. This tactic will help you calculate how best to buy low and sell high. The advice of an experienced real estate agent is also valuable.<\/p>\r\n

It’s important to determine if the current market favors buyers or sellers. That way, you can make the best of whatever situation you find yourself in.<\/p>\r\n

Buyer’s Market<\/h3>\r\n

A buyer’s market is when the market is "cold." That means there is a glut of homes on the market and the selling process is slow. The advantage belongs to the buyers, as they’re in a better position to offer less than the asking price.<\/p>\r\n

The downside in a buyer’s market is that your old home might be harder to sell. To protect yourself, you can make a contingent offer on a new home. This means the offer is dependent (contingent) on the sale of your old home<\/a>. A seller caught in a buyer’s market will often agree to this arrangement.<\/p>\r\n

You can also consider turning your home into a short-term rental until you can sell it. The disadvantage of short-term renting is that it can make it harder to hold an open house. A realtor can help you determine if this option can work for you.<\/p>\r\n

Seller’s Market<\/h3>\r\n

A seller’s market is a "hot" market. Houses are selling fast, and sellers often have many offers from which to choose. That means there are fewer homes on the market.<\/p>\r\n

In this competitive market, your concern will be finding a new house before selling your current house. Be ready to move fast when you find a new home you like. Have a mortgage lender lined up with a pre-approval in hand. Even better, have a cash offer ready if you are able.<\/p>\r\n

But even the best prepared can find themselves without a place to live. There are two things you can do to keep that from happening:<\/p>\r\n