How to Buy When You Have a Home to Sell

How to Buy When You Have a Home to Sell

Have you outgrown your home? Maybe you need a home office or separate bedrooms for your kids. We outgrow our homes for many different reasons.

One of the most consistent concerns we hear over and over is that people don't know how to make a move because they're concerned about managing, selling and buying in today's competitive market. Managing the logistics of a move is something we love to help our clients with each day.

If you're looking to move, there are four approaches you can take to manage selling and buying in today's market.

One: Shop for your next home and write an offer with a home sale contingency. Once your offer is accepted, you can list your current home.

The benefit of this option is that you might be better able to manage your timelines. However, the downside and major challenge of this strategy is that it's very, very difficult to compete with a "subject to sale" contingency in today's market. And it's most likely that you will miss out on that next perfect home.

Two: You can get your house up on the market and then start shopping.

You may still have to write a home sale contingency, but at least your home will be active on the market, and you might be able to secure an offer before you write an offer on your next property.

In today's competitive market, you may be able to negotiate a rent-back or extended closing so you can shop for your next place without feeling rushed.

Three: Talk with your mortgage lender to see if you qualify for purchasing a home while you still own your current home.

This is what we believe to be the best option if it's possible in your situation. This can feel scary to many people because they're worried about having more than one mortgage. However, in today's seller's market, there's a very good chance your home will sell quickly, and therefore, the risk is pretty limited.

This route allows you to maximize your freedom and control the process, by not allowing the sale of your current home to impact your ability to buy.

Four:  Put your house on the market and accept that you might have to move twice and rent for a little while.

With this option, you're going to probably have to move twice, but at least when you're ready to buy, you'll have more control of your situation; you won't have to worry about having a double mortgage payment or writing an offer with a subject to sale contingency. This allows you to take advantage of a strong seller's market and then be in a position to strike when the next right option hits the market.

If you have any further questions about your unique situation, we're always happy to help figure out what the best option is for you.