Two deals. One prayer

___

Published Date 7/25/2025

If you’re buying a home while selling your current one, it may feel as if you are walking a tightrope. While it’s not an uncommon phenomenon, somehow knowing others have gone through the same stress does not make it any easier.

So Realtor.com’s Jamie Wiebe outlines what can happen and what to do about it so that ulcers don’t form as you get through a huge transaction where the stakes are high. Concerns arise such as: “If my buyer backs out, I won’t have any cash to buy my next home!” Or … “If my own purchase falls through and my current home sells, I’m homeless!”

Breathe in, she says. Don't panic.

She explains how most buying and selling mistakes are easily avoidable—or at least predictable. Nothing you’re going through is unheard of at times like this, and your Realtor should be good at helping you navigate this stressful time.

First off, make sure your current house is as move-in-ready as you can get it. Repaint scratched walls, fix broken decking, add grout in a rarely used bathroom and be sure to get a spanking new shower curtain. “Don't wait until the last minute to kick-start this process, otherwise you could wind up in a bind,” says Wiebe.

She recounts another agent’s story where this simultaneous scenario was at play. The agent advised his client repeatedly to start prepping the home, "but he kept pushing it off and pushing it off, despite actively looking for a new home and submitting offers."

Once the client went under contract to buy a home, suddenly he was faced with rushing to list his existing home. “When they finally finished prepping, it was already October—precisely when the market was slowing down and it became tougher to find a buyer,” says Wiebe, who advises anyone caught up in this potential bind to get the little projects out of the way. Rely on your agent to know what to do when the market is about to slow down as well as help you prioritize the most important tasks to accomplish.

If you think about it, when you're buying and selling simultaneously, the number of moving parts doubles, says Wiebe. “If any of those parts gets jammed, it can throw off both transactions.”

She cites another example of a three-way transaction: The sellers of property A wanted to buy property B—and the sellers of property B wanted to buy property C. The agents had to coordinate two closings while three different families moved in and out of properties. While it all eventually worked out, the agents involved said to assume that you won't be able to buy and sell at exactly the same time, and that you’d better have a plan in place in case everything goes wrong.

“Keep your emergency fund well-stocked,” says Wiebe. “In a best-case scenario, you may simply need a hotel for a week, but you may also find yourself looking into short-term rentals. Have cash on hand—in addition to your down payment funds—to survive the setback.”

One of the biggest mistakes is when simultaneous buyers and sellers fail to get pre-approved on their new loan. Pre-approval is key, as it puts a stop to unrealistic dreaming by telling you exactly what size of house you can afford. “Having a large down payment and decent income doesn’t necessarily mean you’ll automatically qualify for a larger home loan," says Wiebe.

While it’s all good and well to surmise you know your home’s value, what if the market softens? What If you're forced to take an offer that's $20,000 less than expected? Poof! There goes the down payment on your new home. So Wiebe advises to give yourself a monetary cushion. “If you're hoping to use the entire sale price as a down payment on another home, move forward with the assumption your home will sell for less than expected,” she says.

Unless those involved are flush with plenty of cash, everyone will be stressed, says Wiebe. “That person selling your dream home? And the buyers under contract for your current place? They're all losing sleep too.”

She says when issues arise, don’t discount their importance. That leaky pipe is on you, not your buyers. "One mistake is expecting so much from the people selling the home, but not being willing to give anything to the buyers of their own home," says one agent Wiebe consulted. "A little compromise goes a long way, especially when there are two or more escrows on the line."

Juggling more than one agent is not a cakewalk either. “Expect this already messy process to get even messier if you're juggling agents for your listing and for buying a new home,” she says. “Try to simplify things by using the same agent for both transactions.” Still, there will be scenarios where that is not advisable: “If you're moving out of state, look for a reputable buyer's agent in your new location. If you're remaining in the same area, you may prefer an agent who works exclusively with buyers or sellers—not both.” In that case, she says, ask for a referral within your agent's brokerage so you can, at a minimum, keep both transactions under the same roof.

Other concerns relate to timing, the funding of loans, when banks close, and when moving vans arrive. In the end, however, it’s good to know that this has all been done repeatedly (and successfully) for decades. And that that tightrope usually has a safety net if it’s all planned out well.

Realtor, TBWS

All information furnished has been forwarded to you and is provided by thetbwsgroup only for informational purposes. Forecasting shall be considered as events which may be expected but not guaranteed. Neither the forwarding party and/or company nor thetbwsgroup assume any responsibility to any person who relies on information or forecasting contained in this report and disclaims all liability in respect to decisions or actions, or lack thereof based on any or all of the contents of this report.

American Home Lending USA, LLC - NMLS ID: 71983. To verify licensing, visit NMLS Consumer Access (www.nmlsconsumeraccess.org). Equal Housing Lender.