Since most people cannot afford another house without the sale of their current house, this comes up a lot in real estate. Timing the selling of the old and buying of the new while eliminating a gap in between is tricky but can be done!

The first step is to find an agent who has successfully executed what is called a simultaneous closing. This is where you close on your current home in the morning and then close on the new home in the afternoon. In the simultaneous closing you eliminate a gap in housing, which can be costly and inconvenient. You also reduce the risk of having to pay multiple mortgages at one time.

In our current market conditions, houses move so fast that you’ll typically want to wait to have your house on the market before doing any serious house hunting. When you receive an offer on your current home you’ll want to negotiate to include what’s called a reverse seller contingency clause. This will give you, the seller, the right to cancel the contract should you be unable to identify and secure a new home for yourself. This window, which is commonly 10-14 days, is where you as the seller have the option to cancel without penalty if you don’t find a home. 

Once you’ve agreed with the buyer to a reverse seller contingency on your current house it’s time to get to work finding your new house. You and your agent will most likely have your eyes on some properties that meet your criteria. You’ll need to very quickly see homes and make an offer on a home that best suits your needs. If this process goes smoothly then you’ll be able to get a solid contract to purchase your new property. 

Are you still with me? If you’re not confused yet, congrats! This is where the real fun begins…. At this point both properties will be under contract and you’ll enter into the inspection periods on both properties at roughly the same time. The rest of the transaction plays out similarly for a typical sale or purchase. It’s just happening all at the same time on both properties as you move toward the closing date.

There are a lot of moving pieces and it’s easy to get lost. Here are a couple other tips I recommend for a smooth same day simultaneous close:

• Plan for a 45-60 day closing timeline to make sure everything can align to close on the same day. It takes a little more time to line two homes up so you’ll appreciate some breathing room in the process.
• Negotiate to use the same title agency for both the sale and purchase. Having all the documentation with one title agency eliminates a lot of the back and forth when attempting to close two properties in one day. 

Wanting more tips? Comment below or shoot me an email. Happy to help. 

Lindsay Fricks, Helping you, your family and friends Live & Love in Arizona!