If you are trying to buy real estate in Manhattan or Brooklyn while also attempting to sell the home you currently own, you know what a stressful situation this can be. The majority of home sellers today (61%) are what is referred to as “synchronous sellers,” or those who are trying to buy and sell at the same time. Fortunately, there are some easy tips that you can use to help you navigate this process successfully and with minimum stress.

Think About Your Financial Situation

Not everyone will be able to buy and sell simultaneously, and you need to assess your current financial situation to make sure you can afford to do so. Though the ideal situation is that you’ll be able to sell your home before you buy new Silicon Beach real estate, the reality is that you may have to pay two mortgages for a certain period of time or find a way to make a down payment before your equity is freed up.

Ask yourself: Will you be able to afford two mortgages? If so, for how long? How will paying two mortgages affect your overall financial situation? What will you do if you are no longer able to make one or both of the payments? If you find that you will be in a precarious financial situation if you have to make two payments, you and your Manhattan and Brooklyn realtor may decide to hold off on looking for new homes until you sell your current one, or you may decide to prolong both buying and selling until you are more financially stable.

Decide How You Will Fund Your Down Payment

If you’re ready to take the next step in making an offer on Manhattan or Brooklyn real estate but haven’t yet sold your current house, you’ll need to make some decisions about funding your purchase.

To avoid mortgage insurance, you will need to put 20% down on your new home. If your equity is tied up in your current home that hasn’t sold yet, you’ll need to look into other options. Here are three of the most common:

Home Equity Line of Credit

A home equity line of credit, also known as a HELOC, is a revolving line of credit secured by the home you currently own. If you have a low debt-to-income ratio and decent credit, you can usually secure a HELOC for a lower interest rate than other typical loans. As a bonus, you can also deduct the HELOC interest you pay on your taxes.

Sell Assets

Do you have tangible assets like classic cars, precious metals, or buildings? Or do you have a large portfolio of investments? If so, your Manhattan and Brooklyn realtor may suggest you sell one or more of these assets to pay for your down payment. The upside of selling assets is that you won’t pay interest on a loan. The downside is you will relinquish future earnings on your assets and could impact your retirement or other financial goals.

Cash-out refinance

With mortgage interest rates still quite low, doing a cash-out refinance on your current home is a good option. This type of refinancing allows you to secure a new mortgage for more than what you currently owe on your primary home and receive the difference in cash. That cash can then be used to put towards a down payment.

Make a Logistics Plan

Moving and ensuring you have a place to live can be logistical nightmares when you’re attempting to buy and sell simultaneously. If you sell your Manhattan or Brooklyn real estate before you’ve purchased a new home, you may find yourself homeless. On the other hand, if you’ve bought a new home but haven’t yet sold your current one, you’ll find yourself with two houses (and two mortgages).

Having a plan in place before either of these happens is the best way to reduce stress and ensure you can take action quickly. Here are some possible solutions:

Rent out your current home

If your Manhattan and Brooklyn realtor has helped you purchase a new home but hasn’t sold your current one yet, you can make the decision to rent it out for a period of time. The income you will receive from the renters will help you cover the extra mortgage and reduce the financial burden of owning two homes. You may decide to limit the rental to six months or a year before trying to sell again or keep the home as a rental for another stream of income.

Move into a short-term rental

Have you sold your home but haven’t yet found a new house you want to buy? Some people in this situation move in with friends or family members. If this isn’t an option for you, consider securing a short-term rental. You can rent a home for a few weeks or a few months while you continue your home search. This takes the pressure off and allows you to enjoy the journey instead of feeling rushed to buy.

Get a storage unit

A storage unit is helpful no matter which situation you find yourself in. When you get a storage unit early in the selling process, you can move the majority of your belongings to free up space and help your home stager do his or her work. You can also get a jump start on moving. If you do find yourself moving in with relatives or a rental house, you can leave your items in storage until you finally move into your new house.

Buying and selling simultaneously can certainly be stressful, but it’s more manageable when you have a plan in place and partner with an experienced Manhattan and Brooklyn realtor. Reach out to a professional real estate agent like Travis Pham & William Mascio to ensure your buying and selling process goes smoothly and doesn’t negatively impact your overall financial situation.