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Selling your current home and buying a new one on the same day? It may sound overwhelming, but with the right planning, it can be done!
Many Massachusetts homeowners rely on the money from selling their current property to purchase their next home. Coordinating two closings in one day takes some extra preparation, but understanding the process can help make moving day a little less stressful.
Here’s what you should know before scheduling back-to-back closings.
Can You Buy and Sell a House on the Same Day?
Yes! Buying and selling a home on the same day is possible in Massachusetts.
Typically, the sale of your current home happens first, followed by the purchase of your new home.
If you’re using the proceeds from your sale toward your new purchase, the timing is especially important. Your sale needs to be completed, and the necessary funds must be available for your purchase.
This is why communication between your attorneys, lenders, and real estate agents is so important.
How Do Two Closings Work on the Same Day?
Although every transaction is different, here’s how Sherman Law typically helps coordinate the process.
Step 1: Sign Your Sale Documents Ahead of Time
At Sherman Law, we typically arrange for our clients to sign their deed and Power of Attorney before their sale closing.
This allows the closing attorney to complete the sale without requiring the seller to attend in person, giving our clients more flexibility on an already busy day.
Step 2: Coordinate Your Sale Proceeds
If you’re using the money from your sale toward your new purchase, our office works with the attorney handling your sale closing to coordinate the funds.
Depending on the circumstances, we may arrange for the sale closing attorney to send a check in advance for our office to hold in escrow, or to wire the proceeds once the sale is on record and the funds are available for disbursement.
These arrangements are coordinated ahead of time to help minimize delays. However, funds held in escrow cannot necessarily be used until the applicable closing and disbursement requirements have been satisfied.
Step 3: Close on Your New Home
You’ll come to Sherman Law’s office to sign the documents for the purchase of your new home.
While you’re signing, our team will be coordinating the final details of your closing. Once the sale of your current home is on record, the necessary proceeds are available, and we’ve received the required funds from you and your mortgage lender, we can submit your new purchase documents to the Registry of Deeds for recording.
Once the purchase is recorded and the closing is complete, you’re one step closer to settling into your new home!
What Could Cause a Delay?
Even with careful planning, unexpected issues can arise.
Some common causes of same-day closing delays include:
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Mortgage funding delays: Your buyer’s or your own lender may need additional time to release funds.
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Recording delays: Delays recording the sale can affect when proceeds become available.
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Title issues: A missing mortgage discharge or other title problem may need to be resolved.
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Last-minute paperwork: Missing signatures or documents can affect the closing schedule.
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Moving logistics: Coordinating movers, final walkthroughs, and possession of both properties can be challenging.
Because one closing often depends on the other, a delay in your sale could also affect your purchase.
Tips for a Smoother Same-Day Closing
If you’re planning to buy and sell on the same day, a little preparation goes a long way.
1. Tell your attorney early. Make sure everyone knows that your purchase depends on the sale of your current home.
2. Arrange your sale paperwork in advance. Signing your deed and Power of Attorney ahead of time may eliminate the need to attend your sale closing in person.
3. Coordinate the funds. Your attorney can work with the sale closing attorney to plan how and when your proceeds will be delivered.
4. Review your Purchase and Sale Agreements. Your attorney can help identify deadlines and provisions that may be important if one transaction is delayed.
5. Have a backup plan. Consider flexible moving arrangements or temporary storage in case your closings don’t happen exactly as scheduled.
Can You Use the Money From Your Sale to Buy Your Next Home?
Yes! Many homeowners use the proceeds from selling their current property toward purchasing their next home.
However, the money from your sale isn’t necessarily available the moment the closing documents are signed.
Your sale must reach the appropriate stage for funds to be released, and the proceeds must be available for use in your purchase.
That’s why coordinating with both closing attorneys in advance is so important.
Frequently Asked Questions
Do I need to attend both closings?
Not necessarily. At Sherman Law, we typically have sellers sign their deed and Power of Attorney in advance, allowing the sale to be completed without their attendance. You’ll generally still need to attend your purchase closing unless other arrangements are approved.
What happens if my sale is delayed?
If your sale is delayed, your purchase may also be affected, particularly if you need the sale proceeds to complete it. Your attorney can review your contracts and discuss available options, including whether an extension may be needed.
Can my sale proceeds go directly toward my purchase?
Yes, arrangements can often be made between the closing attorneys to coordinate the funds. The method and timing depend on the transaction and applicable requirements.
Buying and Selling in Massachusetts? Sherman Law Can Help.
Coordinating the sale of one home and the purchase of another involves a lot of moving parts. Having experienced professionals involved early can help you prepare for potential challenges.
At Sherman Law, we help clients coordinate same-day closings, arrange advance signing of sale documents, and plan for the transfer of sale proceeds.
With offices in Hingham, Boston, Plymouth, and Dartmouth, Sherman Law serves buyers and sellers throughout Massachusetts.
Contact Sherman Law to discuss your upcoming real estate transactions.
About the Author
Attorney Timothy A. Sherman is a Massachusetts real estate attorney with more than 20 years of experience helping buyers, sellers, and lenders navigate real estate transactions. As the founder of Sherman Law, Tim and his team assist clients throughout Massachusetts, with offices in Hingham, Boston, Plymouth, and Dartmouth.
Contact Attorney Sherman:
Phone: 781-664-4936
Email: [email protected]
