Are you considering buying a house in Maryland?

Perhaps you already own a home but are looking to sell and move into a new one. Whatever your situation may be, buying and selling a house in Maryland at the same time can be tricky. 

According to a recent study by United Van Lines, Maryland ranked as the 10th most moved-from state in 2020. That means a lot of people are relocating from Maryland and selling their houses in the process.

Even if you are relocating to another town or neighborhood in Maryland and not moving out of state ir can a challenge, but we can help. 

In this article, we explore the steps involved in buying a house. While also covering how to move and sell your current home in Maryland.

sell Maryland property and move

Disclaimer: This blog post and website provides general information on Maryland real estate. Maryland Estates, LLC, doing business as Creo Home Buyers, and its authors are not liable for the accuracy or use of this information; consult with a trusted real estate professional or attorney for guidance regarding your unique selling situation.

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Creo Home Buyers buys houses AS-IS for cash in Maryland, Northern Virginia, and Washington DC. Simply fill in the form to get a fair all cash offer for your property in the DMV.

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How to Buy a New Home Before You Sell Your House

First, determine your financial readiness, which could include the proceeds from a garage sale to offset initial moving expenses. Calculate how much you can afford to spend on a new home without relying on the sale of your current house. This way, you won’t have to rush the selling process and can negotiate a fair price when you do sell.

Next, consider obtaining a bridge loan or a home equity line of credit to cover the down payment on your new place. You can use your existing home as collateral. This will give you the funds to buy your new home upfront while allowing you more time to sell your current house.

It’s also important to work with a real estate agent who specializes in helping their clients buy and sell a house at the same time. An experienced agent can help navigate the process, coordinate timing, and ensure a smoother transition.

You should also prepare for the possibility of temporary housing if your current house sells before you find a new home. Locating a short-term rental or staying with family can ease the pressure of needing to rush into a new home purchase before you’re ready.

How is it possible to buy a house before selling your old home?

Buying a new home before you are able to sell your current home first is possible. But it does come with certain risks and considerations. Do you need a mortgage to purchase the new house? Banks may have more stipulations if you have an existing mortgage on the current home you are selling. 

If you meet common lender financing requirements a second mortgage should be a walk in the park. However, some lenders might require that your old house is sold before they will issue a loan for a new home purchase.

What are the risks of buying another house before selling?

The most significant risk of buying a house before selling your current one is carrying two mortgages simultaneously. Even if you plan to pay for two mortgages, if your current home takes longer to sell than expected, you might be making double payments for much longer than expected.

This can put a major strain on your finances. In such cases you could consider selling furniture or other items you no longer need in an online marktetplace to lighten the financial burden.

Additionally, you might struggle to selling your existing home for the desired price. If you were planning to put the sale proceeds from your old home towards your new home, a less than ideal selling price can make affording the home you’ve recently purchase more difficult.

You’ll also be responsible for the maintenance and holding costs of two properties while you wait for the first one to sell. These double housing costs can add up to several thousands of dollars in just a few short months. This means you could wind up burning through some serious cash waiting for the first property to sell.

Financing Options to Purchase a New House

When purchasing a new house before the sale of your old home with a mortgage is complete, there are several financing options to consider.

Take Out a Second Mortgage

One option is to take out a second mortgage on your old home to use as a down payment for your new house. This will allow you to buy a new home before selling your old one. But it does come with the added responsibility of managing two mortgages simultaneously and finding extra cash to move your stuff. You will also need the funds to pay off your old house.

Obtain Another Mortgage

The most common option is to obtain a new loan to purchase the new house. One option is a government-backed loan, such as an FHA loan, which often requires a lower down payment. However, there are specialized loans worth looking into, like a VA loan, that cater to specific groups.

Bridge Loans

Another option is to consider a bridge loan. This is a short-term loan that provides temporary financing until you can sell your old home. It can be a good option if you are confident that your old home will sell quickly for the price you expect.

401k Borrowing

If you have a 401k account, you may be able to borrow against it to fund the purchase of your new home. But carefully consider the potential financial implications and risks before making this decision.

Loan from Friends or Family

Some home buyers choose to utilize personal savings or a family loan to finance their new home. Just be sure to have a clear repayment plan in place to minimize the chance of arguments and unnecessary strain on your relationship.

Selling and Buying at the Same Time

family packing up to relocate and sell their house in Maryland
Managing a Maryland home sale and relocating doesn’t have to be complicated!

Selling your home and buying another simultaneously requires careful planning and coordination. You’ll need to juggle the timing of multiple real estate transactions. There will also be different timelines to work with in regards to Maryland home buyers and the sellers.

Ensuring smooth transactions and transitions won’t be easy but it can be done.

What are some strategies for coordinating the timing of selling and buying?

One strategy is to include a contingency clause in your Maryland home buying offer. This clause will state that the purchase of the home is dependent on the sale of your current one. This can provide some peace of mind and insurance to you as the buyer. But it may put you at a disadvantage when competing with other buyers, especially in a seller’s market.

Another option is to negotiate a rent-back agreement with the buyer of your old home. Rent-back agreements allow you to stay in the property for a period of time after closing. This can provide you with some flexibility in your moving timeline. Making it possible to sell your home first but not move until you have bought a new one.

How can you handle the logistics of moving while in the process of buying and selling?

Start with a detailed moving checklist and timeline to ensure everything is well-organized. Consider hiring professional movers who specialize in coordinating moves during real estate transactions.

Additionally, pack and label your belongings systematically to make the moving process smoother. Prepare for unexpected delays and make backup plans to avoid any last-minute stress.

If you sell your home before buying your next house, you may need to put some of your belongings in storage. You may also need to find temporary living arrangements until you close on your new home.

Covering Holding Costs and Mortgage of Old House 

When trying to sell the old house in Maryland, it is important to consider the holding costs associated with it. These costs include mortgage payments, property taxes, insurance, and maintenance fees.

To manage making two mortgage payments, it is crucial to carefully evaluate your finances and plan. Start by budgeting and cutting unnecessary expenses to free up additional funds.

Some homeowners rent out their Maryland property via short-term rentals. Using platforms such as Airbnb can help cover housing expenses. This lets you offset the costs of holding onto your house until it is sold for the price you need.

What if my tenants don’t want to leave when it’s time to sell? Check out: How to sell your tenant-occupied property in Maryland.

Timelines of Common Ways to Sell a House in Maryland

The timeline for selling a house in Maryland can vary depending on the method chosen.

List Current House with a Realtor

One common way to sell a house in Maryland is to list your home with a real estate agent. This typically involves staging the home, taking professional photos, and marketing.

The timeline for selling your home with a realtor may vary. It can depend on the local market conditions and the attractiveness of your property to local buyers. Typically, it takes between 65-90 days from listing to closing for houses to sell on the open Maryland market.

Sell Your Current Home Yourself or Via Auction

Selling your own home yourself, known as “For Sale By Owner” (FSBO), gives you more control over the process. It also allows you to save thousands in commission fees. However, selling property FSBO in Maryland also requires significantly more time and effort than hiring an agent. You will have to be willing to advertise and negotiate with potential buyers and navigate the entire closing process alone. 

Use an MD Auction House to Sell Quickly

Choosing to sell your home via auction can result in a very quick sale. But you may receive a lower final price due to competitive bidding. Be prepared for numerous buyers to walk through your house on the day of auction. You’ll also need to move and vacate quickly once it sells, possibly hiring a rapid fast moving company and managing expedited moving costs. Auction sales often provide a quick sale, usually happening within 30 days of the auctions end, if not sooner.

Sell Directly to a House Flipper

If you need to sell your home even faster, you could explore selling to a house flipper directly. These investors specialize in purchasing properties in need of repairs or renovations. They often offer a cash deal, which is a plus for many sellers. 

Keep in mind that while selling to a flipper can provide a quick and hassle-free sale, it can come at a cost. Prepare for a lower selling price than if it had been listed on the open market. On the open market you might receive multiple home offers which can drive up your selling price vs. contacting one buyer.

Though the major benefit for those selling directly to a cash buyer the closing times can be as short as 7-14 days.

Sell Your Home for Cash When You Need to Move Fast

Do you need to move and sell your home before buying a new one? Selling your home for cash might be the ideal solution. 

At Creo Home Buyers, we buy houses in Maryland in any condition. This allows you to sell your home quickly and without having to worry about repairs or showings. We even offer rent-back options, so you can sell your house first and still live in while you wait to close on your next home.

Evaluate your finances and consider the timelines for selling your current home. Explore the financing and selling options to make the process as smooth as possible.

Request a FREE CASH Offer!

Golden Seal of Excellent Rating on Google for Creo Home Buyers

Creo Home Buyers buys houses AS-IS for cash in Maryland, Northern Virginia, and Washington DC. Simply fill in the form to get a fair all cash offer for your property in the DMV.

Get Your FAIR Offer!

What are the advantages of buying before selling a home?

Buying a house before selling avoids the need for temporary housing. It also gives you more time to prepare your current home for sale, especially if the home needs repairs.

Is it possible to stay in my current home until I find a new one?

Yes, it is possible to stay in your current home until you buy a new one. This can provide you with more time to search for the perfect home without rushing the process.

What should I do if I find a new home before selling my current one?

Did you find a new home before selling your current one? You can make an offer on the new house contingent on the sale of your current home. This allows you to secure the new home while still allowing time for your current home to sell. Also, this avoids the need for two mortgages and other housing costs.

What is a home equity loan?

A home equity loan is a type of loan that allows homeowners to borrow against the value of their home. This can be used to finance a new home purchase before selling the current one.

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