When the time comes to sell the family home, most people need to purchase another home or condo to move into. Or when you’re ready to finally move out of your first apartment and in into your new home with your significant other, it can seem a little tricky. With all the things that have to line up to make this happen, how do you handle the logistics and coordination of buying and selling homes simultaneously?
Here are a few things to consider before you get started:
- The simplest way to handle a buying and selling situation is to sell your home first and then shop for a new one. You’ll lock in one transaction and then move confidently on to the next. Could you stay with relatives or move into a short-term rental while we help you find your new home?
- Is your financial situation strong enough that you could swing a down payment on a new property without selling your current home first? Would you be able to handle two mortgage payments for a while?
- Our mortgage experts can advise you based on your financial situation. They can tell you if it would be reasonable for you to take out a home equity loan on your current home to get the cash for a down payment, or whether a bridge loan to cover two mortgages makes sense.
- Making an offer contingent upon sale of an existing home is a very tough sale these days with inventory being so low. That said, if you can demonstrate that the sales contract is signed and that the buyers for the contingent sale are strong, that maybe all the fire power you need to convince the sellers to take your deal. This is what we do best!
- A similar strategy is to “extend the closing on purchase,” which simply means we ask for the closing on your new home to be extended beyond the standard 30 to 45 days. Once again, sellers may not be willing to accept this condition unless your offer price is very attractive.
- In today’s seller’s market, we might ask for a “rent-back” provision where you go to closing on your current house and then rent it back from the new owner for a period of time. This usually does not extend beyond 90 days or so, but gives us time to find your next home.
Once your ready, the next step is to take a deep breath. With some preparation and a little help on your side, you can alleviate some of the stress that comes when buying and selling a home. We’ve been through it before, with our own homes and our clients’ homes in our 15+ years in the business. Not everything will be easy, but we will certainly try to make the process as smooth as possible!