7 Tips on Buying and Selling a Home at the Same Time in Philadelphia

Buying your first home is an experience like no other, with feelings that toe the line between terror and thrill. Once you have the property deed in hand though, the dominant feeling is relief. You have your new home, and all of the stress was worth it. It’s yours and it’s perfect… until one day it’s not.

The quaint, two-bedroom Philadelphia rowhome that you saw yourself enjoying for many years to come, now barely has enough room to fit your exercise bike. The lack of parking that once seemed bearable, now has you dreaming of your own private garage or parking space.

There are various reasons that homeowners trade in their starter homes for a bigger, grander property as circumstances in life can change quickly. But how do you go about buying and selling a home at the same time in Philadelphia? 

Below are seven tips to make both real estate transactions smoother and more cost effective.

Save when you sell, save when you buy

Remember how the expenses piled up when you bought your first home in Philadelphia? Between the down payment and closing costs, the fees quickly grew. Now imagine paying closing costs and commissions or fees on two transactions.

It may feel natural to quickly list your current home, and immediately begin looking at new properties to buy online. Before you do, research ways you can save on these costly transactions.

For your current place, look for real estate agents with fair commission rates. Similarly, look for ways to save by hiring a buyer’s broker that offers cash back after closing, where you can receive a portion of your agent’s commission as a buyer refund after closing. 

Find a real estate agent who will list your home for a fair commission

While it’s tempting to start searching for your new place, a better plan is to decide on an agent to list and market your current Philadelphia home — preferably one who isn’t trying to charge you the steep commissions you see on TV.

A real estate agent with local expertise will advise you on how to price your home using recent sales trends in your neighborhood. This is important as it gives you a clearer picture of how much you may expect to net from a sale, which likely factors into your budget for your next place.

When scoping out listing agents, don’t choose the first realtor you meet with when selling a home in Philadelphia. It's good practice to interview several brokers and it’s great practice to negotiate the listing commission when selling your property.

Today, there are modern alternatives to traditional brokerages that help sellers save compared to the average 5-6 percent commissions in Philadelphia. 

For example, Philadelphia homeowners that sell with tech-enabled brokerage Prevu pay a fair listing agent commission of only 2 percent plus a buyer's agent commission for a savings of up to 2 percent with the brokerage’s Smart Seller service.

A quick sale is the goal, not a problem

Many homeowners in Philadelphia are overly eager to find their new place before selling their current home. The fear is that if they sell too quickly, they might end up with no place to go. So, what should you do if your home sells earlier than expected?

Selling quickly at an attractive price is a champagne problem, as they say. There are always options for temporary housing for several days or weeks — including creative options like leasebacks. At the end of the day, the number one priority is to get the best price for your current home. 

Mortgage pre-approvals show you are a serious buyer

Once you have a sense of the interest in your property and the potential net proceeds from your upcoming sale, you can calculate how much cash you’ll have available to put toward your next home.

Speak to your mortgage broker and share the facts of your current situation and the different financial scenarios of your sale. With these facts, they’ll be able to provide an appropriate pre-approval letter (in some cases, contingent on the sale of your current residence). 

Armed with this documentation, find a buyer’s agent to represent you on the buyer’s side. You may choose to work with the same brokerage that’s listing your current apartment or home. It’s advisable to choose a buyer’s agent who specializes in purchases and offers buyers a benefit.

Buy your new home online with the guidance of a local expert

With a better sense of your budget and mortgage pre-approval to show you are serious, you should now feel empowered to start looking at homes online. 

Prevu offers a digital home buying platform to simplify the home search. You can see which homes are available, easily request tours from the convenience of your phone or computer, submit offers online, and collaborate with your dedicated agent via Prevu’s messaging system. 

The best part is that Prevu gives back up to a portion of their commission to the buyer (sometimes referred to as a commission refund). If you buy a $750,000 home in Philadelphia with Prevu with a buyer’s broker commission of 3% provided, you as the buyer would receive up to $7,500 cash back.

Be ready for moving day well in advance

When you are preparing to sell your home, your listing agent will likely give you staging tips so that your home looks move-in ready for the next buyer. That will include tasks like decluttering the space and potentially putting a portion of your belongings and extra furniture in storage for a period of time.

It might seem overwhelming now, but think of it as getting ready for moving day early! Having everything sorted and ready to move will save you time and stress later on.

Scheduling two closings on the same day (don’t do it)

Scheduling the closing of your sale and the closing of your purchase on the same day is never a good idea. It can become very complicated, and adds unnecessary stress.

When possible, you want your home sale to close before you close on the purchase. This frees up the necessary funds to buy your new home. This is especially important when you have a contingency on your mortgage commitment. 

Some banks hold large checks for an unnecessarily long period of time -- even if they are certified funds! So make sure to check with your bank to learn if this could apply to you. You may need those proceeds from the sale to bring to the closing table for the new home!

For peace of mind and less stress, avoid scheduling both transitions on the same day. 

Are you considering a move within Philadelphia? Learn more about selling and buying with Prevu.