By Eric Berman, REALTOR® | The Eric Berman Team at Compass
 

TL;DR:

When people run into trouble buying and selling at the same time, it's usually one of a handful of mistakes, and most happen well before closing: not knowing what the sale will net, committing to a purchase on the strength of an accepted offer that isn't binding, telling the lender too late, and treating closing dates as fixed in a state where they routinely move. Here they are in the order they tend to happen, with where to go for the full picture on each.

Before You List

Guessing at your proceeds. The purchase depends on what the sale nets after commission, transfer taxes, attorney fees, your mortgage payoff, and any concessions — not on the list price. Build a real net proceeds figure before you look at homes; the breakdown of what a Long Island sale costs shows each line.

Deciding the order without pricing it. Buying first and carrying two homes can cost $12,000 to $16,000 a month combined here. Selling first means paying for somewhere to stay in between. Put numbers on both before choosing; the discussion of whether to sell or buy first walks through it.

Waiting too long on a home equity line. If you plan to use one to fund the purchase, many lenders won't open it once your home is listed. That decision has to be made before the sign goes up.

Leaving problems on your own home for the buyer to find. An open permit or an old loan never formally discharged will surface in the buyer's searches after contracts are signed, and a delay on your sale becomes a delay on your purchase. Check the building department record and have your attorney run a title search before listing.

When You Make Your Offer

Treating your accepted offer as a done deal. In New York, an accepted offer binds no one until contracts are signed and the buyer pays the deposit. Committing to a purchase because your sale was "accepted" leaves you exposed if that buyer walks.

Talking to the lender too late. Lenders generally count your current mortgage payment against what you qualify for until the home you're selling is under contract, and some want to see the signed sale contract before committing. Ask early so your purchase offer fits what you can actually borrow; the post on buying and selling at the same time covers how lenders treat the two homes.

Assuming a sale contingency is free. Making your purchase conditional on your sale protects you, but it weakens your offer, sometimes enough to lose the house. If you can wait until your sale is under contract or have other funds, the offer is stronger without it.

Between Contract and Closing

Building a plan around fixed dates. New York contracts usually set closing "on or about" a date, and delays of days or a week or two are routine. Two closings that depend on each other need room for either to slip. Setting the sale a day or two before the purchase is often safer than insisting on the same day.

Using two attorneys who don't talk to each other. When one deal drives the other, the attorneys need to coordinate dates, contingencies, and the flow of money. One attorney for both, or two who are clearly in touch, avoids gaps.

Booking movers and ending leases on contract dates. Wait until closing dates are confirmed before committing to anything you can't easily change.

Closing Week

Forgetting that your payoff figure expires. Your mortgage payoff statement is good only through a specific date. If the sale closing moves, it needs updating, or the numbers won't match on the day.

Moving money carelessly. When sale proceeds are wired toward a purchase the same week, that's exactly when fraudsters send fake wiring instructions. Confirm any instructions by phone with a number you already know, never one from an email. The full picture of closing covers wire precautions.

Where to Start

Get a real net proceeds figure, decide the order with numbers in hand, and talk to your lender and an attorney before you list. Check your own home's permit record and title early. Then build in room between the two closings and wait on moving plans until dates are firm. For a starting read on your current home's value, try a quiet look at current figures.

The Honest Bottom Line

Almost every problem in a combined sale and purchase comes from one deal depending on the other and something moving that nobody planned for. The fixes are mostly timing — knowing your numbers early, talking to the lender and attorney before you list, and leaving room between closings. For anyone working through a specific move, with no pressure attached, that conversation is available whenever the timing suits.

This is general information, not legal, lending, or financial advice. Lender requirements and contract terms vary. Consult a lender and a licensed New York real estate attorney about your circumstances.

FAQs

What's the most common mistake when buying and selling at the same time?

Treating an accepted offer on your current home as a done deal. In New York, it binds no one until contracts are signed and the buyer pays a deposit, so committing to a purchase on the strength of it leaves you exposed if that buyer walks away.

Is it a mistake to close both homes on the same day?

Not necessarily, but it's riskier than it looks. New York closing dates often move, and if the sale is delayed even a few hours, the purchase that depends on its proceeds can't happen on schedule. Setting the sale a day or two earlier gives you a buffer.

When should I talk to a lender if I'm buying and selling?

Before you list, or at least before you make an offer. Lenders generally count your current mortgage until the home you're selling is under contract, which can reduce what you qualify for, and some want to see the signed sale contract before committing to your new loan.

Can I get a home equity line after listing my home?

Often not. Many lenders won't open a home equity line on a property that's already on the market. If you plan to use one to fund your next purchase, set it up before listing.

How do I protect myself from wire fraud during back-to-back closings?

Confirm every set of wiring instructions by phone using a number you already know, never one provided in an email. Moving sale proceeds toward a purchase in the same week is exactly the situation fraudsters target.

By Eric Berman, REALTOR® | The Eric Berman Team at Compass

Eric Berman | Long Island & Queens Associate Broker | Compass
1468 Northern Blvd, Manhasset, NY 11030
(917) 225-8596 | eric@ericbermanre.com | theericbermanteam.com