Have you ever thought about the complexities involved in selling your home while buying a new one?
For most first-time home sellers, this process comes as a surprise only when they experience it firsthand. The truth is, it can be a real juggling act, and if one thing goes wrong, the entire plan can collapse like a line of dominoes. If you find yourself in this situation, fret not! In this blog post, I’ll walk you through the three options to buy and sell a home simultaneously, ensuring that all the pieces come together seamlessly for you.
If you’d rather watch a video on this subject, I’ve got you covered ☞ Buy + Sell a home Simultaneously
Option #1: Closing Contingent
The most common approach is to sell your current home contingent on finding a buyer. This means you put an offer on a new home, but you are only obligated to purchase it if someone buys your current home. In essence, your purchase of the new home is contingent upon the successful sale of your current one. While this option offers some flexibility, it also shifts most of the risk to the home seller, which might not be ideal, especially in a competitive market.
Option #2: Own Both Homes Temporarily
If you have the financial means, you could consider carrying two mortgages for a short period. In this scenario, you secure a mortgage for your new home and stay in your current home until you’re ready to move. This approach is helpful when your new home requires significant renovations, and you prefer not to move in until the work is complete. It also works well if you plan to convert your old home into an investment property and rent it out after moving into your new home. However, this option comes with drawbacks, including the need to be approved for a second mortgage, the burden of paying two mortgages simultaneously, and the challenge of coming up with a down payment out of pocket.
Option #3: Rent A Home
Surprisingly, many home sellers are unaware that they can rent their current home back from the buyers after the sale. This arrangement, known as a rent-back deal, allows you to receive the sale proceeds without having to move immediately, providing you with both time and money to find and purchase a new home. However, this option transfers the risk to the buyer, and many potential buyers might be hesitant to agree to it, as it might delay their move-in date.
Navigating the process of buying a new home while selling your current one can be quite challenging. Sometimes, several people find themselves buying and selling homes contingently, creating an intricate domino effect of transactions. To successfully orchestrate such a complex move, you’ll need the assistance of a skilled real estate agent who can expertly guide you through the process.
If you’re considering making a move, don’t hesitate to reach out to me for help! I’m here to provide valuable advice and the guidance you need without any pressure or sales tactics. And if you’re not planning to move just yet, save this blog post for future reference, so you can revisit it when the time is right. Remember, buying and selling a home simultaneously can be a challenge, but with the right support and knowledge, you can navigate it smoothly and find the perfect place to call home.