When you already own a home and you’d like to move to a new home, it can be overwhelming and a bit scary! Most people will tell me they don’t want to be homeless and decide that the only solution to this problem is to find “The One” and then list their home for sale.
This is NOT the only way…and is generally the toughest route to a new home. Why? Because most Home Sellers (who you are buying from) aren’t wanting to accept an offer from someone who hasn’t accepted an offer on their current home. It’s too many variables of things that could go wrong!
So let’s discuss a couple other options. After all, I’ve helped a LOT of people with Buy/Sell at the same time and not one of them ended up homeless. 😃
Option 1: Buy First, Then Sell
Not everyone can pull this off, but if you have the cash or can qualify for 2 mortgages at the same time, this is the easiest route. Sometimes this can be pulled off with a “Bridge Loan” as well.
Option 2: Secure a Rent Back when you accept an offer on your home
Most people will need the proceeds from their current home to purchase their next home. Generally that means you are going to need to list your home before finding your next home. Scary right? Well, there are many protections you can put in place. One is to make sure you are able to Rent your current home after the sale closes. It’s pretty easy to get a couple weeks (most of the time for free!). Many buyers are even willing to allow up to 2 months in the home after the sale closes. Generally the rental rate is based on the new owner's mortgage. This extra time gives you extra time to find and close on your new home.
When you already own a home and you’d like to move to a new home, it can be overwhelming and a bit scary! Most people will tell me they don’t want to be homeless and decide that the only solution to this problem is to find “The One” and then list their home for sale.
Option 3: List with Contingency For Replacement Property
This option means you will only accept an offer on your current house if the buyer allows you time to find a replacement home. The normal time frame is 17 days, but often we can get extra time. Then once you’re in contract on your new home, the time frames for both sales begin.
Often we do this in combination with a Rent Back.
Option 4: Have a backup plan
I know it’s not fun to move twice. Yet, when you really want to make sure you get the perfect next home you may need to be willing to make a double move. Why? Because the best way to compete against other home buyers is to have your home sold and cash in hand to get the deal done on your dream home. Also, it allows you as much time as necessary to find The One.
Backup plans could include staying with friends/family, renting an AirBNB on a more long term basis, or staying at a long term hotel.
As you can see, it is complicated and nerve wracking to sell one home and purchase another. But when you have experience by your side, it really doesn’t need to feel like you’re jumping off a cliff.
I find the best thing to do is make plans in advance. Know your options and be prepared. Ready to start planning?