A simultaneous closing is when a single property is both sold and then bought by another party. Contrary to what you might think, you don’t need to save up for the dreaded “grey area” of being a homeowner that’s not yet allowed to move in. This is a situation that is completely avoidable, and it’s a shame that so many future homeowners worry about this extra cost when thinking about owning.
At Rate Leaf, we’ve seen it all in the mortgage industry. We've seen clients who have had to put all their things in storage for a couple of days. And other clients who have had to camp out in a hotel or Airbnb for a week—sometimes two. Although this might seem like pennies when compared to the cost of buying a home, there’s no reason for you to have to make these extra expenses. Even a couple of days spent somewhere else is money lost—and we’re here to tell you that you can sell your home, buy another one, and move in, all in one smooth process.
Naturally, there are some things to pay special attention to when it comes to doing things right.
If you’re a first time homeowner or simply looking to learn more, the first thing you need to realize is that buying a home means coordinating with real estate professionals, a good mortgage broker, and title companies. It’s all an intricately coordinated dance, and if anyone is left out of the loop, this can spell disaster for your sale. Any delay needs to be communicated as soon as possible so that both closings can be coordinated together.
Remember that during a simultaneous closing both the seller and the buyer are undertaking a partnership. It’s a joint venture, and until closing, you’ll need the expertise of real estate professionals, title companies, and a mortgage broker that understand the nuances of the home buying process.
For example, a mortgage broker should always be consulted once a buyer’s approval has been received. If everything checks out, and a buyer is under contract, then you can make a serious offer.
Does listing your home while you shop for your new one sound a little crazy? Hardly. It'll actually help you time the simultaneous closing right. You don’t want to fixate on a beautiful home and then not have your current home ready to be sold.
When you do find a home that you’d like to buy, notify the seller that your purchase is contingent upon the sale of your home. In other words, you can’t buy a new home if you don’t first sell your current one. When shopping for a home, remember that you can ask for a set time period to find one.
Your buyer on the other hand, needs to fit home buying criteria. If you can find a cash buyer, even better! You should start with an inspection (this takes about five days), then the appraisal (this takes about seven days). Your approval should take no more than ten days, and the approval will give you a buyer’s commitment—this is when you want to make a serious offer.
If you can, schedule a closing date on the same date the offer is made. Closing times depend entirely upon how quickly you find a home. It can take anywhere from thirty days or less or between forty five and sixty days. The speed of your closing is determined by you.
Even if you have extra time for closing—don’t delay inspections. If you run into any property issues, it’s important that the team is alerted as soon as possible. This is so that stress and distrust don’t begin to create tensions in the team, but it’s also to make sure the sale doesn’t fall apart.
Some inspections that are important to order are:
If the simultaneous closing is being done in two locations that are very far from each other, then it’s likely that two settlement companies will be used. However, Rate Leaf works exclusively in the state of Florida, with a greater focus on South Florida. Because of this, you really only need the one settlement company when working with us. The use of a single settlement company streamlines the home buying process because it makes communication simpler and more direct.
An experienced team of real estate professionals, title companies, and mortgage brokers like Rate Leaf are necessary to complete a successful simultaneous closing. Recently, Rate Leaf completed three simultaneous closings with the Falero Team—one of our most trusted real estate partners.