What homeowners need to know about buying a home before selling.
One of the questions that people often ask me is: Can I buy a home before selling my current home? The quick answer to that is yes. But it’s not as easy as one might think. A bit of creativity and structure are needed to do that. Today, I’ll give you three different ways that you can buy a home before selling it.
1. By paying cash or securing financing. This option involves having enough cash on hand or securing financing to cover both the down payment on your new home and any remaining mortgage payments you have on your current one. After buying your new place, you can then sell your existing home without the pressure of a looming deadline.
2. Structure contingency. This approach involves getting your current home “market-ready” before searching for your new one. There are two steps involved in doing that. The first one involves listing your current home for sale on the market and getting it under contract with a buyer. After you get your current home under contract, you can start looking for a new home contingent upon the successful sale of your current one.
“One of the reasons to consider a contingency-based approach is the flexibility that it provides. ”
3. Double contingency. This strategy will work for those who prioritize finding their ideal new home before selling their existing one. The first thing you have to do is find your dream home, before having your current home prepped for listing (take a photo of it, and discuss the pricing). After preparing your current home, make an offer on the new home with a double contingency: your current home being listed and under contract, and the successful closing of your current home’s sale.
Just take note that not every seller entertains offers with contingencies, but a skilled real estate agent can help you in these cases and can foster productive negotiations. One of the reasons to consider a contingency-based approach is the flexibility that it provides the seller and the buyer. It gives buyers the time to find their dream home, and the seller might benefit from a quicker closing if your fund is already secured.
Let us help you find your dream home and sell your current one. We have helped countless buyers and sellers who were in this kind of situation in the past. So, if you’re ready to make your move, contact us today by phone or email, and let’s discuss a personalized strategy for you!
