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There it is—the dream home! It’s just two blocks away, in the same excellent school district and neighborhood. It has a pool and a renovated basement, a perfect upgrade for your growing family.
Only one problem: that pesky old starter home you currently live in. At one time, this place was everything you ever wanted, the perfect piece of the American dream. But with baby #2 on the way, the thought of four people sharing a bathroom is a bit of a nightmare. It is time to move, but how does one simultaneously buy their (next) dream house while selling their own home?
Is there an overlap? Will I have to pay two mortgages? What are my options?
Here are some of the best options for homeowners looking to buy a new home but needing to sell their current one first to afford the mortgage on the new property.
Contingency Offers: A Safety Net When You Need It Most
Making an offer on a new home that’s contingent on the sale of your current home might be your safety net. This arrangement offers you the flexibility to back out if your home doesn’t sell, giving you peace of mind. However, be aware that in a competitive market, these offers might be less enticing to sellers.
Bridge Loans: Bridging the Gap
A bridge loan might be the lifeline you need. It’s a short-term solution that leverages the equity in your current home to finance the next one. This option is perfect for those confident in their home’s quick sale. Remember, it’s always wise to chat with a mortgage broker to get the full picture.
Simultaneous Closing: Timing Is Everything
The goal is to coordinate the sale of your current home with the purchase of the new one, requiring a ballet of coordination between your real estate agents and lenders. It’s complex but not impossible with the right team.
Sale-Leaseback: Stay a While
Sometimes, the seller of your new home might be in a similar bind. A sale-leaseback agreement lets you sell your current home and then lease it back, giving you the time you need without the rush.
Selling to an iBuyer: Fast, but at a Cost
If speed is of the essence, selling to an iBuyer might be an option. These instant buyers can make a quick offer, often below market value, but it means you can move on more swiftly to purchasing your new home.
The Bottom Line
Juggling the sale of your current home while eyeing a new one is no small feat. It requires careful planning, coordination, and sometimes, a bit of creativity. But with the right guidance, it’s entirely possible to navigate this transition smoothly.
Let’s Chat
If the thought of managing this on your own seems overwhelming, I’m here to help. As your trusted real estate consultant, I can help you weigh your options and decide on the best course of action for your unique situation. Feel free to reach out at mark.kotsopoulos@cbrealty.com for a chat about your next steps. Let’s turn that dream home into a reality.
Interested in selling but unsure how to get the ball rolling? Check out our 7-Step Plan
