Here are a few things to keep in mind when youre buying and selling a home simultaneously.

Youre at the mercy of the market and potential buyers.

Its also easier to get a new mortgage when youve sold your old home.

You wont have two mortgage payments holding you back.

Logistically, selling first is usually the best way to go.

But it does come with a few disadvantages, too.

For one, you could sell without having anything lined up.

You may have to rent while you look for a new home, or keep some belongings in storage.

But there are ways around this, which well get to later.

Finally, if you want toinvest your home equity, youll have to know your numbers.

This loan is based on the amount of home youve already paid foryourequity.

it’s possible for you to invest this loan to earn a return.

But if home prices increase while youre waiting, you lose the value of that return.

Your mortgage would be $100,000 more than the value of your home.

If youareinto this practice, its just another reason to familiarize yourself with the market.

But well get to that in a bit.

This give you more time to get your home ready to sell and ease into the process.

This would help you cover the mortgage payments while you move into your new home.

Of course, now you have the added headache of being a landlord.

Research prices in the areas where youre both buying and selling,legal site Nolo explains.

You should find out whether the market favors sellers or buyers.

As a general rule, you want to sell first in a buyers market.

In a sellers market, you might consider buying first, provided that your property can indeed sell quickly.

Research your options, keep your credit score high, and research loans.

We haveadditional tips for preparing for a future home purchase, so be sure to check those out.

If youre actively buying first, you canprepare your home for sale in the meantime.

Address maintenance issues, declutter and clean, research realtors and home stagers, and so on.

Noloexplains that this might workfor sellers who are having a hard time finding a buyer.

They add that you should be ready to give them reasons why your home will probably sell quickly.

If selling, you might negotiate with your buyer instead.

Again, this isnt always possible, and it depends on the market, too.

But its an option.

Another option is arent-backorlease-back arrangement.

You negotiate a lower price, or agree to pay the new owner rent.

Realtor.com has moreabout this here, but keep in mind that not all lenders allow it.

Consider bridge financing

Bridge loansare available specifically for those who are buying and selling a home simultaneously.

You get a short-term loan to cover the down payment on your new home before selling your old one.

Then you repay the loan when your old place sells.

The requirements all-but negate the benefits of the loan!

This post was originally published in 2015 and was updated November 11, 2020.