Buying a new home while selling your current one can feel like a daunting juggling act, especially for LGBTQ+ individuals navigating the housing market. Whether you’re upgrading to a bigger space, relocating, or making a fresh start, the process of managing both buying and selling simultaneously can be overwhelming. However, with the right approach and guidance, this transition can be smooth and successful.

In this blog post, we’ll walk through some key steps and strategies that can help LGBTQ+ individuals confidently buy a home while selling their current one. Special thanks to GayRealEstate.com for providing valuable resources and expertise to assist in this journey.

Start With a Clear Understanding of Your Finances

Before diving into the home-buying and selling process, it’s crucial to assess your financial situation. Understanding how much equity you have in your current home, along with your current savings and credit score, will help you determine your purchasing power. This will guide your home search and set realistic expectations.

Mortgage Pre-Approval: Get pre-approved for a mortgage so that you know exactly how much you can afford to borrow for your new home. Having pre-approval in hand makes your offer stronger when it comes time to bid on a new property.

Selling Price of Your Current Home: Work with a real estate agent who understands your financial goals. They can help determine a realistic asking price for your home based on the market and recent sales in your neighborhood. Having a clear picture of how much your home will sell for will help you make informed decisions when buying your next home.

Decide Whether You Want to Buy Before Selling or Sell Before Buying

One of the first questions LGBTQ+ buyers often face when buying a home while selling their current one is whether to buy before selling or vice versa. Both options come with their advantages and drawbacks.

Buy Before Selling: This is a great option if you find the perfect home before you sell your current one. However, it can be risky if your current home doesn’t sell as quickly as expected or if you’re unable to carry two mortgages at once. To mitigate this, you could secure a bridge loan to temporarily cover both mortgages.

Sell Before Buying: Selling your current home before you purchase a new one is often the safer route, as it ensures you have the funds necessary for the down payment on your next property. It also reduces the risk of carrying two mortgages. However, this strategy requires flexibility in timing, as you’ll need to find a new home quickly after selling.

Leverage a Contingent Offer

If you’re trying to buy a home before selling your current one, a contingent offer may be the right move for you. A contingent offer means that your purchase of the new home depends on your ability to sell your current home.

This option protects you from being stuck with two mortgages if your current home doesn’t sell on time. However, contingent offers can sometimes be less attractive to sellers, especially in a competitive market. To make your offer more appealing, consider offering a larger earnest money deposit or a quicker closing date on your current home.

Work with LGBTQ+ Friendly Real Estate Agents

One of the most important steps when buying and selling a home is choosing the right real estate agent. LGBTQ+ individuals may prefer to work with agents who understand the unique challenges and considerations faced by the community.

Platforms like GayRealEstate.com provide a network of LGBTQ+ friendly agents who are well-versed in both the real estate market and the specific needs of LGBTQ+ buyers and sellers. These agents will provide expert advice and ensure that the entire process is seamless, inclusive, and respectful.

Consider Closing Date Flexibility

One way to make buying and selling simultaneously a bit easier is to negotiate a flexible closing date. For example, you may be able to negotiate a rent-back agreement with the buyer of your home, which allows you to stay in the property for a set period after the sale while you finalize the purchase of your new home.

On the flip side, if you’re the buyer, ask the seller of the home you’re purchasing for flexibility in the closing timeline. This could give you more time to secure your sale or make arrangements.

Take Advantage of Government Programs

There are various government programs that can assist with both buying and selling homes. For LGBTQ+ individuals, it’s important to look into programs that may offer benefits or protections based on your unique situation.

FHA Loans: These loans are popular for first-time homebuyers, offering lower down payments and more lenient credit score requirements. If you are purchasing your first home, you may want to explore this option.

Down Payment Assistance Programs: Many states and municipalities offer down payment assistance programs for first-time homebuyers, low-income buyers, or those purchasing in specific areas. Research available programs to help reduce the financial strain of a dual transaction.

Take Your Time, But Be Prepared for a Quick Sale

While selling and buying at the same time can be stressful, it’s important to take your time and not rush into decisions. However, once your home sells, you may need to move quickly to secure a new home. Be prepared for the possibility of having to act fast and make decisions based on what’s available in the market.

Keeping a list of your priorities in mind will help guide your decision-making process. Whether you need extra space, proximity to LGBTQ+ community centers, or specific neighborhood amenities, having a clear vision will ensure that you find the perfect home.

Conclusion

Buying a home while selling your current one is a big undertaking, but with careful planning and expert guidance, it can be done successfully. Whether you decide to buy before selling, sell before buying, or use a contingent offer, understanding your finances, working with the right agents, and negotiating flexibility will help you manage both transactions smoothly.

Thank you to GayRealEstate.com for offering essential resources for LGBTQ+ homebuyers and sellers. Their expertise ensures that members of the LGBTQ+ community can approach the real estate market with confidence and security, knowing they are supported throughout the process.

Happy home buying and selling!