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Dual closing process: a guide for downsizing homeowners

On Behalf of | Oct 27, 2023 | Real Estate Transactions |

Buying a new home and selling your current one can be an exciting yet daunting endeavor, especially if you’re a downsizing homeowner. The thought of handling two real estate transactions at once might sound overwhelming, but it can be a manageable process with the right guidance. Let us break down the steps in the dual closing process, covering the legal aspects, financial considerations and sharing tips for a smooth experience.

Get your finances in order

Before you dive into the dual-closing journey, it is crucial to review your financial situation. This means understanding your current mortgage and any outstanding loans and assessing the funds available for your new home purchase. Speak to your financial adviser or mortgage lender to ensure you clearly understand your financial standing.

Find a reliable real estate agent

Engaging a real estate agent is a key step in simplifying your dual closing process. An agent can help you find a new home and market your existing property effectively. They will also assist in negotiations, which can be particularly tricky when you’re buying and selling simultaneously.

Take care of legal matters

The legal aspects of dual closing can seem complex, but they are manageable with the right support. Consider hiring an attorney who will handle the necessary paperwork, from drafting purchase agreements to ensuring a seamless transfer of title. Make sure you understand the legal obligations and rights associated with both transactions.

Timing is everything

Synchronization is key in a dual closing process. Coordinating the sale of your current home with the purchase of your new one requires precise timing. Discuss your ideal closing dates with all parties involved, including the buyers and sellers, to minimize hiccups.

Prepare contingencies

Contingencies in your contracts can provide a safety net. For instance, you may include a contingency that your purchase is dependent on the sale of your current home. This can protect you from owning two properties simultaneously.

It is the start of your journey

While navigating a dual closing process may seem complex, it is achievable with careful planning and the right support. With these steps in mind, you will be better prepared to embark on your journey as a downsizing homeowner.