Over the years, I’ve seen clients run into some issues when they find themselves buying and selling a home at the same time. The stakes are often high, so this is definitely an article you may find useful if you’re considering this delicate multi-task. As they say, it’s wiser to learn from other people’s mistakes, so here are a few friendly tips from yours truly that may help you dodge some easily avoidable headaches.

1.) Preparing a Backup Plan

There are twice as many factors to consider when you’re buying and selling simultaneously. If any of these factors collide, you could be in for a little bit of a hiccup.

For example, I recently had a married couple preparing for their retirement home, and they brought me on to manage both the sale of their home as well as the purchase of their new home. The buyer of this couple’s home was straightforward and honest, but an issue arose when their mortgage lender made an error. Not the buyer’s fault nor my client’s, but it delayed my client’s sale for weeks! Luckily, things worked out, but situations like this can be nightmarish if there isn’t an emergency fund set aside and things get stretched too thin. My clients had to recalibrate their budget and found they needed a short-term rental for a few weeks.

I find it’s better to plan for the worst, and that would mean carving out an emergency fund so there’s cash on hand in case you find yourself in a setback situation as described above.

2.) Give yourself wiggle room

A lot of times the market can be unpredictable. Maybe you are expecting your house to sell at a certain pricepoint, but then the market eases up a bit and you’re forced to accept on offer that’s $10,000 lower than expected… that could mean the down payment on your new home.

If you’re planning to use the sale price as a down payment on your next home, it’s good to assume that your home will sell for a little less than you’re hoping for. Even if you know your home SHOULD sell for X, it’s wise to plan for Y. Just in case things don’t go as they should, it can remove a lot of stress and scramble in the future.

3.) Getting 2 different agents

I know, I know. I’m a little bit biased here. But let’s think this one through for a moment. If there is a separate agent for listing and for buying, then there’s a bit of efficiency being missed out on. It’s twice as much phone time. There’re two different personalities to learn and keep in contact with. Most importantly, from my perspective, having knowledge of both transactions helps me to close both of the homes at the same time, usually saving time and making for a smoother transition.

Now, if you’re moving out of state, I would be happy to find you a reputable buying agent. If you’re sticking around here, I would be honored and delighted the opportunity to serve as both your buying and selling agent.

4.) Sell First, Buy Later

It’s understandable that I’ve had many clients prioritize purchasing a new home over selling the current one. It depends on each client’s situation, but piling on a second mortgage is not recommended. It can certainly make it easier to move, but the complications that arise from two mortgages can be substantial: qualifying for a new mortgage will be tougher, there’s no guarantee the home sale will happen on the hoped for timetable, and there’s the risk an emergency fund will be tested by unforeseen errors like the one mentioned above.

Now, I have for several clients made a purchase contingent on the sale of a current home, and this can work very well in certain markets with the right buyers and listing. However, it can cause you to be knocked out of the bidding if it’s a strong seller’s market, like the way it has been for some time in my hometown of Winchester, Virginia. I can advise on a case-by-case basis, and my recommendation on this will depend entirely on the circumstances.

Another contract option that can come in handy when timing a simultaneous buy/sell is the rent-back agreement. As the seller, you may be able to use this to have the buyer agree to allow you to stay in your home for a period of time, usually 60-90 days, after the sale is finalized. This extra padding will usually cost a lower selling price or a rent amount to be paid to the buyers after the fact. In a competitive seller’s market, buyers are more likely to agree to these terms, especially with a pro negotiating on your behalf.

5.) Preparing Your Home in Advance

Again, it’s important not to get too caught up on the buying side! It’s important to do the due diligence entailed in selling your home the intelligent way. Every single home I’ve helped sell has required a little bit of work at a minimum, but there’s more to consider.

Here’s a quick checklist:

-Select the correct real estate agent who is experienced and can ask AND answer the important questions for you.

-Have a professional inspect your home to figure out what may need fixing instead of waiting to find out from the buyer’s

-Setting the stage to create a warm and inviting atmosphere so your buyers can fall in love and picture their life in the future

-Take a close look and figure out how to price it right so you don’t waste time and have buyers pass right by. I can run a comparative market analysis so we can hone in on the ideal price based on your needs and homes selling in the area

6.) Know When To Compromise

Trust me, I know first-hand the frustrations that can arise in a stressful situation. Negotiating is an art form, and it can really test a person’s patience, especially when conducting a buy/sell in a tight time period. I’ve witnessed some stressful situations, and I think it’s important to recognize buyers and sellers are both stressed out as well!

Keep in mind that when problems arise.. for example, a seller refusing to handle certain repairs or the buyer needing extra time in escrow because they had an issue with their home sale… we’re all human.

Experience can go a long way here. It’s great to be vested in a home, but don’t let the fear of missing out guide your decisions. Sometimes, it’s not worth compromising either.

These are a few things to watch out for when you’re planning the selling and buying of a house simultaneously. It can be stressful, but with the right agent and careful planning and consideration, risks can be managed and the process can be completed smoothly.