Buying and Selling at the Same Time
Recently, I’ve noticed a lot of sellers are excited to sell their homes, but they’re less enthused to buy. Since inventory levels are so low, I understand the concern. Don’t worry; if you’re looking to sell your home and buy a new one, you have options, and I want to go over a few of them with you today:
1. Negotiate a long closing with your buyer. Instead of a typical 30-day close, try and have a 90-day one. In this seller’s market, many buyers are willing to accommodate this need. With such a long close, you should have plenty of time to find a new home.
2. Use a reverse contingency. In this scenario, you would insert a clause into your purchase agreement that makes your sale contingent on finding another home to buy. This is very convenient, but some buyers may not be interested in a house with one in place.
3. Negotiate a rent-back agreement. In this situation, you close on the house as normal, then rent the property back from your buyer while you look for a new home. These are increasingly popular, but some mortgages limit the amount of time you can rent the property from your buyer.
"Each option has its pros and cons. "
4. Find temporary housing. After your home sale, you could rent for a year and give the market time to settle. This option is popular with people who don’t know if they want to stay in their area since there is little commitment.
5. Buy new construction. You can actually time your closing date with the move-in date on your new construction home. I’ve done this for years, and it’s very convenient.
6. Use a bridge loan or HELOC. Both of these options leverage the equity in your home to make a purchase before selling.
If you want to go over any of these options in detail, please call or email me. I’d love to discuss them further with you!