Buying a Home While Selling Another

Buying A Home While Selling Another

This balancing act requires professional assistance. There are several options to choose, depending on your financial situation and your tolerance for risk. There is no single right choice for all people.

Of course the best situation is being able to sell your current home simultaneously with buying your next home. This does happen and your chances to do so can be increased using by using the right approach. The following explains briefly the different options available to you.

You could put your next home into contract contingent upon selling your current home. The risk is your current home does not sell soon enough and you loose the home you wanted. Also, many sellers will not accept this type of contract offer. Lastly, your negotiating leverage is greatly diminished as you are asking the seller to take a risk that your home might not sell within that sellers’ desired time period.

Another choice is to buy your next home before your current home is sold. Many people prefer doing this to minimize their stress of moving and the burden of showing their home while living in it. They buy first, move to the next home, then put their current home for sale. You need to have the ability to carry the loans or to buy for cash without selling to accomplish this option.

The third option is to sell your current home and move the temporary housing while you find your next home. This has the least risk and gives you the position of leverage in negotiating and you know exactly how much money you have from the sale of your current home. Of course it requires some inconvenience, moving twice and living in temporary housing, which may not suit your lifestyle.

An option used by many people and one we have found very successful is to put your home on the market with the intention of accepting an offer “contingent on finding suitable housing”. We start by looking at some homes in your purchase price range to establish that there are several homes that would meet your criteria. Then we put your home on the market and wait for an offer. When you enter into a sale contract, you know exactly how much you will receive from the sale and when the sale will close. Next we begin actively looking at homes to purchase, making the purchase offer only “contingent on closing of sale” of your current home. You make one move, achieve a simultaneous closing and have a choice of any home on the market since all sellers would accept offers “contingent on closing”.

Give me a call to get together and explore the details of each option and explore home available on the market today that fit your price range.