Over the years, I’ve met many sellers who are both excited and overwhelmed by the idea of selling their current home while purchasing a new one. Managing two transactions at once can feel daunting—some have had bad experiences in the past, while others simply can’t imagine juggling both at the same time. That’s why I’ve put together this guide to explain the three most common strategies for buying and selling simultaneously.
1. Listing First
One of the most common approaches is to list your current home before buying a new one. There are a few different ways to do this, each with its own pros and cons.
Option A: Sign a Listing Agreement and Start Shopping
With this approach, you commit to listing your home while actively searching for a new one. Once you find a house you love, you can submit an offer contingent on:
• Your home being listed by a certain date
• Your home going under contract within a set timeframe
• Closing on your current home before purchasing the new one
This option gives you peace of mind, knowing you have a new home lined up before selling. However, it weakens your offer since the seller must wait for your home to sell.
Option B: List Your Home Before Making an Offer
This step is similar to Option A, but it makes your offer slightly stronger because your home is already on the market. However, it still carries some risk since you haven’t yet secured a buyer.
Option C: Get Under Contract Before Making an Offer
In this scenario, your home is not only listed but also under contract with a buyer. Now, when you make an offer on a new home, you can demonstrate serious intent to move forward. While there’s still a risk that your sale could fall through, this approach puts you in a stronger position than Options A or B.
2. Listing With an Intent to Purchase
Another approach is to list your home with a built-in contingency that allows you to shop for a new house while under contract with your current house. This means that if you can’t find a suitable home within a specific timeframe (e.g., 30 days), you have the option to cancel the sale.
While this provides flexibility and peace of mind, it may make your listing less attractive to buyers. Additionally, backing out could mean reimbursing the buyer for expenses like inspections and appraisal.
3. Selling and Buying With Minimal Overlap
It’s also possible to sell your home first while negotiating a rent-back agreement, allowing you to stay in the home for a set period after closing. This gives you extra time to find and purchase your next home without the stress of tight deadlines.
With this method, you can:
• Sell your home and secure your proceeds
• Negotiate a rent-back period (sometimes at little to no cost)
• Use this time to find your next home and close on it
This strategy gives you maximum leverage as both a seller and buyer.
Choosing the Right Strategy
There’s no one-size-fits-all solution—it all depends on your financial situation, market conditions, and personal goals. I always take the time to sit down with my clients, review their options, and create a strategy tailored to their needs.
Ideally, you can close on both transactions on the same day, and yes, it’s absolutely possible—I’ve helped many clients achieve this! If you’re looking to buy and sell in Maryland or West Virginia, I’d love to help. I specialize in Frederick, Washington, Carroll, Montgomery, and Howard counties in MD, as well as Jefferson and Berkeley counties in WV.
Feel free to reach out—I’m here to guide you through every step of the process!
