Buying a new home at the same time as you’re selling your current home is all about timing — and a great agent, of course. With the right strategy and a professional real estate agent by your side, you can navigate the process with ease.
It’s also important to consider options for temporary housing. While the stars may align and you may not need them, a plan for where you’ll go in between selling and buying will help alleviate some of the stress.
Buying and selling at the same time can be complicated and at times, overwhelming, which is why I am here help make it as stress-free and exciting as possible! If you are thinking of buying and selling at the same time, give me a call. I can help you decide which option may be best for you.
Request an Extended Closing
This is a great strategy if you and your agent are confident that your current home will sell quickly. With this scenario, you can request to extend the closing date of your new home past the typical 30-45 days. This will give you enough time to sell your current home during that timeframe before moving into the new home.
However, this option will only work if you have the downpayment for your new home and are qualified to carry both mortgages simultaneously. The lender will qualify you based on the worst-case scenario (that your home does not sell in time).
Ask for A Rent-Back Agreement When Selling
Also known as a post-settlement occupancy agreement, a rent-back allows sellers to stay in their home until a specified date past closing. After settlement, you (the sellers) would pay rent to the buyer who now owns the home (almost as if they are your new landlord for 30-60 days). This would allow you the time and money to find a new home with no contingencies and without having to worry about overlapping mortgage payments.
Take Out A Home Equity Line Of Credit. (HELOC)
A home equity line of credit allows you to borrow against the equity in your current home. You can use this money as your down payment on the new home, and pay it off once your current home sells. Make sure you speak with a lender first, to make sure that you can qualify to hold both mortgages in the interim before your home sells, along with the HELOC payments.
Make An Offer With A Home Sale Contingency
In this scenario, you would focus on finding a new home BEFORE you list your current home. Once you find a home you love, you will submit an offer with a home sale and settlement contingency, which means you will buy the home only if you can successfully sell your existing home.
Keep in mind that in most markets, this is not really an option, as there are still many multiple offer situations happening due to the lack of inventory. This is something that some sellers may consider if their home has been on the market for a while.
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