4 ways That You Can Buy And Sell At The Same Time
Navigating the buy-sell balancing act can be challenging (not to mention overwhelming), but with the right strategy and a good agent, it's entirely achievable.
Read on for a few ways to make buying and selling simultaneously work for you and your family.
Option 1: A Leaseback
A leaseback allows you to sell your home first and then rent it back temporarily from the new owner. This option buys you time to find and close on your next home without having to move twice. Basically, you become the renter of your own home once you settle (for a period of 30-60 days), providing you with the funds for the downpayment on your next home.
Option 2: A Bridge Loan
This type of loan acts as a temporary financing solution, bridging the financial gap between selling your current home and purchasing a new home — giving you the downpayment for your new home. With this option, you must qualify to hold your existing mortgage, the new mortgage, and the bridge loan.
Option 3: A Home Equity Loan Or Line Of Credit
A home equity loan or line of credit (HELOC) allows you to borrow against the equity of your current home. You can use this money as your downpayment on the new home and pay it off once your current house sells. This is another option where you must qualify to hold your existing mortgage, the new mortgage, and the home equity loan.
Option 4: Buy With A Home Sale Contingency
While this option alleviates most of the stress of buying and selling simultaneously, sellers don’t typically prefer a home sale contingency, as it puts their home sale at risk This is because if you end up not selling your current home or backing out of the contract, they are back to square one. Although difficult in our current market, this option is not impossible! Look for homes that have been sitting for more than two weeks.
A Few Tips If You’re Buying & Selling At The Same Time
1. HAVE A BACKUP PLAN FOR WHERE YOU WILL GO IF THE TIMING DOES NOT PERFECTLY ALIGN
2. NEGOTIATE THE TIMELINE WHEN SELLING, NOT JUST THE MONEY
3. PREPARE YOUR HOME TO SHOW WELL & SELL QUICKLY
4. KNOW EXACTLY WHAT YOU’RE LOOKING FOR IN A NEW HOME & YOUR NON-NEGOTIABLES
Buying and selling at the same time can be complicated and at times, stressful, but my clients do it all the time. And in the end, they’re all smiles!
As your agent, I'm here to guide you and help make the entire process as enjoyable as possible, so if you're thinking of making a move, send me a message. Along with a trusted lender, I can help you decide which option may be best for you!