Double the Transaction: How to Buy and Sell Properties Simultaneously

Source: Photo by Austin Distel from Unsplash.

Buy low, sell high. That’s the key to making a profit in the real estate market.

However, gaining the returns you seek can be a shipwreck if you move too slowly in a competitive market. One solution is to handle more than one transaction simultaneously, allowing you to take advantage of fluctuating market conditions while minimizing risk. Read on!

Pros and Cons of Buying or Selling First

Purchasing or selling a property can be done while an opposite transaction is still processing. But you need to decide which transaction to start with and then begin the other transaction without waiting for the first to finish. If you’re unsure of which transaction to start first, here’s a quick pros and cons chart:

The pros and cons aren’t as drastic if the property you’re selling isn’t the one you live in. If you have an investment property that you want to sell while simultaneously buying a new one, the choice to buy or sell first can just depend on who you find first—a buyer or a seller.

How To Buy And Sell Properties Simultaneously

Now that we’ve covered the pros and cons, here are the steps to the buying and selling process. A lot of it has to do with timing, but we’ve thrown in a few expert tips as well. You don’t have to follow them in this particular order, although we recommend that you analyze the market before doing anything else.

Analyze the Market

In an ideal situation, you’ll sell your property in a seller’s market and buy a new one in a buyer’s market. That way, you’ll get the highest selling price and the lowest buying price for your new property.

If things aren’t as sweet, check recent sale prices of similar properties (i.e., comps) to get an idea of average values. Several factors affect the housing market. For example, an area with excellent schools may always be a seller’s market—analyze thoroughly.

Further reading: If you’re working in the Metro Detroit area, we have an ongoing Deep Dive series that analyzes the investment opportunities in every city and neighborhood there. It’s a good place to start your market analysis, especially if you’re new to the game. Take a look!

Evaluate Your Timing

Ask yourself, Is now the right time to make a move? Some seasons are better for selling, and some are better for buying.

For example, late spring and summer in the US are popular buying seasons because families typically prefer to move outside of the academic year. Winter is typically slow in the buyer’s market, especially in areas that experience heavy snowfall.

Further reading: For landlords, we’ve written about rental property seasonalities in another article.

Our advice is to talk with local real estate agents to get a good idea of the market trends when you plan to buy and sell. Even if now isn’t the best for a housing transaction, you can at least use the time to prepare. The better you prepare, the easier the process will be once the opportunity presents itself.

Prepare the for-Sale Property

Whether the property you’re selling is an investment property or your primary residence, prepare it for show and tell, so the transition is smooth when you’re ready to sell. If you procrastinate good preparation, you’ll have difficulty getting the timing right for simultaneous buying and selling.

Prep your for-sale property by decluttering, repairing broken things, and deep cleaning the property. You can hire professional cleaners, or you can DIY to save some cash—just don’t put it off.

Pro tip: If you’re repainting or replacing anything, choose neutral to stay within more people’s style preferences and expand your buyer base.

While preparing your property for sale, use the time to evaluate your finances and research financing options. How much can you afford to pay for the new investment? Do you have your mortgage lender on speed dial for pre-approval once you decide on your new property?

If you buy a new property before selling the current one, you might find it hard to come up with the amount. Keep your debt-to-income (DTI) ratio in check, and don’t forget to budget for the down payment on your new property. You can also opt for a home equity line of credit (HELOC) or a bridge loan you’ll repay after closing the new property.

List the Property for Sale

Listing the property really gets the action rolling. The process of selling a property follows the same steps regardless of whether you’re purchasing another property at the same time or not. However, if you’re handling both transactions simultaneously, it’s important to process the sale smoothly and quickly and time it with the property purchase to avoid logistical headaches.

We recommend working with one professional real estate agent who’s familiar with your area and can handle both the listing and the purchase. They’ll help you sell your property by staging it with an expert, deciding what changes to make, listing the open property, showing the property on your behalf, getting buyers, and even networking with other agents to market your property. Having a single agent help with both transactions helps you avoid spreading yourself too thin.

Additionally, working with a local agent can help you price the property appropriately according to your local market so the property doesn’t collect dust for weeks on end—saving you time and energy and avoiding fall-throughs. The agent may even help find a long-term tenant to offset some of the costs of your first mortgage, if necessary.

Selling a property while purchasing another is possible without an agent if you have the expertise and knowledge to ensure that the selling process happens smoothly and simultaneously. The last thing you want is a hiccup that leaves you owning two properties for a prolonged time.

Purchase the New Property

Purchasing a property while simultaneously selling another is as straightforward a process as processing a sale by itself, just smoother and faster. That’s why working with an agent is crucial. These are the benefits of working with a real estate agent to purchase a property while simultaneously handling a sale:

• - They’ll shoulder the time and dedication it takes to deal with multiple parties and processes.
• - They’ll help you decide and understand what you’re looking for in the new property.
• - They’ll have means to find potential buyers (via their connections with networks and the market).
• - They’ll offer a large portfolio of properties and collaborators for you to find a new property.
• - They’ll have a sales and management strategy to close a sale with the buyer.
• - They’ll have an accurate valuation of your property, especially if they work locally.
• - They’ll be responsible for the project, where you can claim and demand guarantees.

If you’re buying and selling in the same city, you can use the same agent to sell the current property and purchase the new one. However, if you’re moving to a new area, you’ll need to find another local agent.

Basically, an agent ensures that you’ll get to purchase your property at a specific time—allowing you to match the timing with selling your current property. You can do this yourself if you have the know-how.

Pro Tip: If you’re planning to rent your new property, work with a property management company to manage the logistics. They can also advise on what kind of property to purchase so you meet the demands of the local tenant pool.

Simultaneous Transactions, Simultaneous Success

By understanding the steps involved in buying and selling simultaneously, you’ll make smart decisions to land a “double-edged” opportunity. Just ensure that both routes are good to go before committing to the process—the last thing you want is to be caught off guard in the middle of two transactions.

And if this sounds too daunting… We’re here to help.

Get in touch with me directly or at for professional help in all things real estate. We’ve been operating in the area as property managers for more than two decades now and have everything you need to buy, sell, and rent out properties.