Advice When Buying & Selling at the Same Time
- Adam Garrett
- Sep 3, 2023
- 15 min read
Updated: Jun 9
There are numerous ways to go about buying and selling at the same time. Here's a spreadsheet I've made with 7 of those options, 3 of which I recommend giving thoughtful consideration to (in green in the spreadsheet) but all of which are viable under certain circumstances & worth a look.
Basic Options for Sellers:
Buy Before You List
For those who don't need the proceeds of their sale in order to purchase something else & who are doing fine on cash reserves, buying 1st before listing your other property may be a safe bet. That ensures that you find something you like and are actually able to close on it. Sometimes you don't find out until the week of closing that something disastrous occurs that kills the deal, & this approach eliminates the possibility that you'll end up houseless for a while. For many though, buying without selling 1st is not a luxury that's possible due to their cash reserves & debt to income ratio impact of carrying 2 mortgages at once since the majority of purchasers use a mortgage and many pay too high of a percentage of their income to be able to handle the DTI impact of 2 according to the lender's guidelines.
Related:
Sell w/ Seller Possession Agreement &/or Buyer Possession Agreement
A Seller possession agreement, also known as a "rent back", is an agreement that enables a seller to close on their home, then live in it for a while after closing. In Hampton Roads, these forms typically include provisions such as for insurance, a deposit, rent, & more.
With a buyer possession agreement, you would purchase a home that you live in for a time prior to closing, i.e. to provide sufficient time for your home to sell.
For many, one of these options will be best.
That said, I typically recommend stating that you "prefer" a seller possession agreement rather than stating that you "require" a seller possession agreement. If you "require" one, it's possible that it could scare off a buyer who might otherwise provide a significantly superior offer vs another buyer. That said, if you do say "prefer" & not "require" have a plan for what you would do in the event that you say yes to such an offer. Typically seller possession agreements are not more than 60 days, the timeline of when buyers using mortgage would need to move in by in order to purchase w/ an owner occupant mortgage.
Likewise with buyer possession agreements, requesting one can hurt an offer as it is seen as a seller concession. In similar markets, it's generally better to use a seller possession agreement by preference (not by requirement) rather than a buyer possession agreement.
Sell, Have Temporary Housing, then Buy
This option is not for the faint at heart, but in some cases could mean a substantial positive financial difference in offers presented to you even when you factor into the equation the cost of 2 moves.
That said, the higher your moving cost, the less this option tends to typically make sense. Especially those with many belongings that they want to take with them to their next home (and use professional movers to do so) that would be costly to move twice may want to avoid this option. If that's you, you might want to "require" rather than prefer a seller possession agreement. Conversely, if your move would cost <2% of the price of your sale, keep in mind that the difference between 2 possible offers could be easily >2% in some cases, & that some buyers will be scared off by a rent-back requirement who might not even want to see the home because of it.
While cash-based extended-stay hotels and other short-term rentals are viable options, if looking to cut costs further, consider using hotel points, room rentals &/or some very low-cost camping options.
The best options by far among hotel points for extended stays in SE VA (assuming no status/lounge upgrades) are concentrated in Williamsburg & surrounding James City County:
Among hotel points, some of the best options to look into will be among multi-bedroom Choice hotels options (i.e. this 4-bedroom suite in California) and using Wyndham Rewards for Vacasa vacation rentals that are a high amount of square feet per bedroom.
Club Wyndham Patriots Place is a great option with Wyndham Rewards in Williamsburg due to low points cost and high square feet, where you'd pay 7500 points per night (6750 if you have the Wyndham Business Earner) for an 870 sq foot room including a full fridge, full oven, microwave, dishwasher, & fireplace. It hosts up to 4. A 75k sign-up bonus on a credit card could get you 10 nights (11 w/ the Wyndham Business Earner).
Among cost-effective points based Choice Hotels 2+ bedroom options in SE VA, Bluegreen Vacations Parkside Williamsburg, Ascend Resort Collection & Bluegreen Vacations Patrick Henry Square, Ascend Resort Collection (lower-rated but still with a relatively good rating and a lower cost) are good options.
If looking to stay with Marriott on points in SE VA, the Marriott's Manor Club at Ford's Colony provides substantial 1 and 2 bedroom villas including full kitchens and living rooms.
For additional 2+ room hotels among some of the bigger chains, see the following map:
Related:
SE VA Points/Certificate Options when considering Hotels, with emphasis on value per point
Credit Card/Points/Travel Consultation with Adam Garrett (free options for Adam's clients & others in some cases)
Park or Road Trip with a Moving Truck or Trailer that You Rent for a Few Days to a Few Weeks
Especially if moving from one local location to another, but even if traveling a long distance (especially if you have your own truck to pull with), this method may be a cost-effective one for giving you the time needed from closing on your home to moving to another location. Here are some example costs of truck rentals from a Newport News Uhaul as of 6/4/25:
Here are a few trailer examples if you have something to pull with, or where renting something to pull with could be beneficial if you're traveling a long distance but don't have something to pull a trailer with:
Have a long closing date between the time of the offer & closing time.
The problem here is that many sellers won't want to wait, and you may lose out on the house you really want with a less competitive offer than someone else who can quickly close. If going with this approach, you can choose from one of these strategies:
A. Get under contract on a home to buy & perform inspections (or get close to closing on new construction if a down payment from a sale isn't needed & DTI can handle it) before you list your own property.
B. List your property for sale prior to finding a home to purchase & immediately start your search.
C. Get under contract on your current property & sign off on the repairs prior to finding a home for purchase.
Home Purchase Contingency
When selling, some sellers/listing agents can even negotiate in a home purchase contingency, where you won't close on your sale until after you are a certain point through with a purchase. For picky sellers, this contingency can be a game changer, though there's a good chance that your sale won't be as lucrative vs if you didn't require one of these. These are best listed in agent remarks by stating something along the lines of "home purchase contingency is preferred, but not required", that way you don't rule out buyers who won't consider one. If your buyers are OK with one, they will still likely want a deadline of some kind and if you don't meet that deadline, they may request a first right of refusal where they are able to get out of the contract
Home Sale Contingency
If you need the funds from a sale in order to qualify for a purchase, you should definitely consider this contingency. A home sale contingency is where you make an offer contingent on your sale. This contingency should not just be a footnote in the preapproval (though it should be there if needed to qualify) if you are using a mortgage. It should be in the offer itself. Otherwise, the seller can feel like you were hiding something. If it's not anywhere to be found in a preapproval nor offer, despite being needed, and you get under contract, & don't plan on using an alternative to get the funds, it may be time soon to talk to an attorney.
Early Possession Agreement
A buyer early possession agreement is a way to get access to a home that you plan on purchasing prior to closing. It includes a way to compensate the seller for the delay in your time between possession and closing.
Limited Possession Agreement
A limited possession agreement is sometimes used to store furniture, or even a POD or Uhaul truck in a driveway, prior to taking possession. It doesn't allow you to occupy the home but is a great route to go if a seller wouldn't feel comfortable with you staying there but would feel comfortable with at least some of your property staying there. It's also a good route if you have relatives or another alternative that would be a cost-effective stay.
Here you have some time in between the closing and when you need to move out. For a mortgage, this tenure will typically need to be 60 days or less for owner-occupants.
Bridge Loan
Per Investopedia, "A bridge loan is a short-term loan used until a person or company secures permanent financing or pays an existing obligation. It allows the borrower to meet current obligations by providing immediate cash flow. Bridge loans have relatively high interest rates and are usually backed by some form of collateral, such as real estate or the inventory of a business." Per the article, these loans incur higher interest rates, large origination fees, require low debt-to-income ratios, & require excellent credit.
Tips on Home Sale & Purchases Together:
Get a Great Listing Agent w/ Great Marketing
Use best practices on finding a listing agent, including taking more time to search for one than most sellers. Get an experienced, well-reviewed listing agent whose listings stand out very well as fantastic.
Do a more thorough search than most for a listing agent. Think of it in terms of the value of your time. If 5 hours of research on the best listing agent yields you $5k of $15k or another # more, would that be worth it? If it's $5k more after a thorough 5 hrs of research, that's $1k/hr. If you make that much on a regular basis, you're a rich man. For most, it'd be well worth it. There are a good number of examples I have where I've saved a seller more than $5k & some that are more than $20k because they worked with me.
Check prospective listing agents' former listings thoroughly.
Do a deep dive in what listing agents offer. i.e. are they doing any of the below?
Certainly consider listing agent commission rates, but skip the for sale by owner option and heavily discounted listing agents. It won't be very reassuring to a listing agent where you're making an offer if they go to your listing that's live and see qualities of it that scream inexperience, DIY, or rush to finish. Some of my worst experiences as a buyer's agent have been with heavily discounted listing agents.
Don't opt for a low commission package if a great agent is offering multiple marketing packages for different commission amounts and if their lowest package available is not doing more than most agents.
Don't offer a below average buyer's agent commission. The listing agent on the house you make an offer on could ask about that, and if you're doing that, they could wonder what else you're doing wrong.
Pick an experienced agent, but keep in mind that I've schooled agents at times with more than double my experience, and that while experience is important, don't assume that the most experienced will be the best.
Don't rely on bandwagon effect for their sales volume or review volume. Lots of reviews are good, but the people with the most sales and the most reviews often aren't as good at selling properties as they are at selling themselves.
If the listing agent says that there is nothing that should do to the house, they're likely dishonest or inexperienced.
If you would like assistance on finding a listing agent, get a quality referral, and make sure that the vetting process is more thorough than most.
Get a Pre-Listing Appraisal
A pre-listing appraisal accomplishes a few things:
Better assurance that you have a lower market time.
A list price according to a pre-listing appraisal sounds a lot better to a listing agent for the property that you make an offer on than a list price based on a comparative market analysis. It can be helpful for the strength of your offer up until after the appraisal contingency is removed.
You can also add the fact that you are listing your property based on the pre-listing appraisal # in your listing, which can help market it.
Tips:
Before you get a pre-listing appraisal, be sure to ask your listing agent about what to do to the house exterior and interior to get it ready for sale and to accomplish the tasks you plan to do before they enter the house.
In some cases, it's best not to list according to the pre-listing appraised value, but if your listing agent says that the appraiser is wrong, ask him or her to show you that via the data clearly. If they're vague, don't buy it. They could be intentionally inflating the value to make you want to list with them more. Some sellers will list their house with whatever agent says it's worth the most and whatever agent acts as if they like it the most. On the other hand, I recall a seller who got a pre-listing appraisal before I gave recommendations on what to do to the house. When we listed, we listed far above what the appraiser had said it was worth, where I felt that the appraiser had undervalued the house. The eventual sales price was significantly above what the appraiser said it was worth even when you factor in the appreciation that occurred between the timing of the appraisal and the timing of the closing. If your listing agent and the appraiser are saying the same thing, it's ideal, and it's a lot more reassuring to the listing agent of a property you want to make an offer on if looking to do so before the appraisal contingency is removed when you have the backing of a pre-listing appraisal.
Get a Pre-Listing Termite Inspection
If you're in a location where Wood Destroying Insect Inspections are a typical part of contracts, or if you're in a state like VA that requires termite (wood-destroying insect) inspections on VA loans, it's a best practice to get one before you list a property that will be home sale contingent.
Even if the buyer who buys your property doesn't use a VA loan, there are cases with FHA, conventional loans, & some other loans that may require a termite inspection. Providing a "clear" termite inspection to a potential listing agent on your upcoming house acquisition will help give them additional peace of mind. Most conventional loans fall under Freddie Mac & Fannie Mae. FHA, Freddie Mac (conventional), & Fannie Mae (conventional) also will want a termite inspection if the appraiser finds evidence of wood-destroying insects.
If you're in a location where the state doesn't require it on VA loans, but where it's still a substantive issue &/or where it's common in local custom, it's not a bad idea to get one:
If you don't get one, & you're in a "none to slight" zone, it's a good idea to state (while providing the referenced map above) that to a listing agent where you're looking to purchase a house. Even if you're in a slight to moderate zone, if it's not a state requirement on VA loans, it's not a bad idea to mention that.
Pre-Listing Home Inspections
If you're in a state like VA where no pre-listing home inspections are required, get one anyway.
If you're in a state where some degree of home inspection is required, but a full-blown home inspection isn't required, get a home inspection that includes the state requirements.
Consider a Large Earnest Money Deposit
While not every buyer will be in a position to use a large earnest money deposit, a sizable EMD can give a seller further assurances & increase the chances of a winning offer. That said, it's critical to be very familiar (& ideal to work with an agent who is who also guides you step by step on your responsibilities) with the contract so that you don't get into a position where you will lose that EMD by a technical error on your part.
Related:
Responsibilities Including Deadlines Template for REIN & VAR Offers
Be Aware of First Right of Refusal Clauses
While I don't typically recommend this option right away, if all else fails, consider a first right-of-refusal agreement. Also, be aware that the seller could counter with one even if you don't mention one. A first right of refusal, also known as a "kick-out clause" is a way to protect the seller when the buyer has a significant contingency that is unusual, such as a home sale contingency. It allows the seller to consider other offers while you are under contract with them, and if another buyer makes a better offer, it allows them to kick you out of the contract that you are in if you don't remove your contingency within the period designated in the 1st right of refusal (3 days is common). If you do one of these, it's best to remove any contingencies that you can promptly, i.e. home inspection and appraisal, and to not request too much with either one. The higher your concession requests, the more reason the seller has to accept another offer.
Order of Best to Worst Regarding Home Sale Contingency from Seller Vantage Point
1. Pending w no contingencies left
Pending w no contingencies left (including no appraisal) & w sale proceeds (& any additional funds remaining, if applicable, w proof of those funds submitted to seller of home they seek to purchase with offer) far in excess of offer price on home seeking to purchase. Highly responsive listing agent of that property. Fantastic marketing in case the deal falls through, i.e. 50 professional photos including area photos, on property & area aerials, >95% of word count used that's available in public remarks highlighting many specific positives about the house (including the year that they were installed), Matterport virtual tour of interior (finished & unfinished space) & exterior, etc. Backup offer in place if things fall through.
2. Under Contract, Contingent, but w/ Pre-Listing Advantages
Under contract, contingent on things like appraisal & home inspection, but with pre-listing appraisal at or above contract price (or at/above contract price minus above appraisal guarantee of buyer), pre-listing home inspection sent to buyer, clear title search prior to listing, pre-listing septic/well inspection, and pre-listing clear termite/moisture inspection letter. Fantastic marketing as well in case anything falls through.
3. Active w/ recent written offers & w/ pre-listing advantages
Active w recent written offers at or above list price & pre listing appraisal (ideally) or comparable sales nearby (within <.5 mi ideally & within 180 days ideally) (already sold) demonstrating value at or above contract price, pre-listing home inspection sent to buyer, clear title search prior to listing, pre-listing septic/well inspection, and pre-listing clear termite/moisture inspection letter. Fantastic marketing as well in case anything falls through.
4. Active w verbal offers <24 hrs after hitting the market
>5 showings and 2 or more of them resulting in verbal offers within 24 hrs of hitting the market
5. Listed in past 3 hrs w >3 showing requests
Active, & just listed prior to offer (within 3 hrs) & w plenty of (>3) showing requests & strong interest
6. Active & listed 1 day ago w plenty of showings and good feedback
Active & listed 24 hrs ago w >4 showings in the first 24 hrs of listing and good feedback
7. Not active, but well prepared to be active asap
Not active yet, but offer submitted along with pictures and pre-listing appraisal that is planned to be used as the list price, pre-listing home inspection, pre-listing clear termite/moisture inspection, marketing plan shared w/ details like using professional photos, using Matterport 3-D photography, using aerials, using area photos, sharing past 5 prior listings in price range of subject property of agent consistently demonstrating strong marketing efforts, listing paperwork data input sheets completed & readiness to list next day if desired, etc.
8. Active & listed 7 days ago w a few showings
Active & listed 7 days ago w a few showings & not obviously overpriced, with decent marketing, but no strong interest
9. Unlisted w details & relatively low probability of being overpriced
Address of the property, pictures of the property, and list price of the property not exceeding the estimates on NARPR or Zillow
10. Unlisted w higher than typical probability of being overpriced
Address of the property, no pictures of the property, and list price of the property exceeding the estimates on NARPR or Zillow w/ no explanation as to why
11. Active & listed 30 days ago w <2 showings
Active & listed 30 days ago w <2 showings, no price reductions, no willingness for price reductions, poor marketing, no offers, & w sale proceeds only minimally above offer price on home seeking to purchase if full price offer with no closing cost assistance is acquired.
Related:
コメント