Chicagoland Area Real Estate Blog & News

How to Buy a New Home Before Selling Your Current One

These programs will help you have a seamless transition to a new home.

In today's real estate market, many homeowners face the challenge of buying a new home while needing to sell their current one. With sellers often rejecting offers contingent on the sale of another home, it's crucial to find solutions that make your offer more competitive.

One effective strategy is utilizing a Buy Before You Sell program. These programs, offered by various lenders, guarantee the sale of your current home, allowing you to confidently move forward with purchasing a new one.

Key features include:

  • Guaranteed sale: The lender ensures your current home sells, giving you peace of mind to buy without the contingency.

  • Availability: These programs are available through a few lenders and investors, and can be accessed in multiple states, sometimes requiring a connection with a local lender.

  • Extended selling period: Typically, you have up to 90 days to sell your home after closing on your new property, providing ample time to sell, especially if priced correctly.

In addition, you might also be interested to know that currently, 16,438 residential properties are under contract in the Chicagoland area in our Multiple Listing Service MRED....

How a Private Network Revolutionizes Real Estate Sales

Get the upper hand on the competition by using a private network.

In today's real estate market, a private network within the MLS is proving to be a valuable tool for both buyers and sellers alike. Let's delve into why this private network is gaining traction and how it benefits those involved.

Firstly, what is a private network? It's essentially a platform within our MLS where properties are listed before they hit the public market. This allows agents, especially those like myself who frequently sell properties, to introduce upcoming listings to a select audience.

For sellers, utilizing the private network offers several advantages. One major benefit is the ability to start marketing the property before it's officially listed. This early exposure generates interest and gives sellers time to prepare their homes for viewing by potential buyers. Photos can be taken, and necessary preparations can be made without the pressure of immediate public exposure. There's also flexibility in timing—properties can remain in the private network for as long as needed, ranging from a few days to several months.

"This allows agents to introduce upcoming listings to a select audience."

Moreover, some sellers prefer this route because they can limit showings to serious buyers only. They may not want the...

What’s The Best Way To Buy a Home Before Selling?

What homeowners need to know about buying a home before selling.

Selling your current home before buying a new one is the conventional way to move. However, in today's competitive market less than .5% of sellers will actually accept an offer with a contingency (current data from MRED MLS). This means your attempt to find the right property and have the seller accept a home close or home sale contingency is worse than looking for the needle in the haystack...you are now looking for the eye of the needle in the haystack.

If you’re in a situation where you must buy first before selling, don’t worry. It’s not impossible, but it takes some strategic planning to make it happen. Here are three things that will help you buy before you sell:

1. Use a home equity line of credit. A home equity line of credit, or HELOC, is a second mortgage that allows you to borrow cash based on the value of your home. In other words, it allows you to use your equity without selling your home. While lenders vary on how much they’ll let you borrow, 85% of your equity is industry standard. If you choose this option, you’ll need to act fast. Getting approved for a HELOC often takes longer than a traditional mortgage approval, so you should have it in place before applying for the mortgage on your new home. Once you have moved into your new property, you can put your old one up for sale at your leisure and pay back your HELOC using the profits. 

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