Picture this: Your inbox is exploding with offers on your house. You’re practically bouncing off the walls with excitement…until you remember: You haven’t found your dream home yet. Panic sets in. Where do you go from here? Play it smart – Here are 5 options for selling and buying a house simultaneously:
1. Rent-Back Agreements: Stay a Bit Longer
A rent-back agreement allows you to stay in your current home after closing, giving you more time to finalize the purchase of your new home. In this agreement, you essentially become a tenant of your former home for a specified duration and usually pay the Buyer rent for this period.
2. Bridge Loans: Your Financial Lifeline
A bridge loan can help you bridge the financial gap between the sale price of your old home and the purchase price of your new one. This short-term loan can cover the gap needed for the down payment toward the purchase of your new home and then be paid back upon the sale of your previous home.
3. Short-term Loan Programs: Your Buying Power Boost
There are various short-term loan programs like those offered by companies such as Homelight that allow homeowners to buy a new home before selling the old one. These programs can lend you the down payment for your new home or even the full purchase price, repaid when your old home sells. Some companies have different “catches” but can still be quite valuable. So get with your agent to discuss all possibilities and programs.
4. Contingency Sales: Your Safety Net
A seller contingency to find a replacement property is a stipulation in a real estate contract that allows you a specified amount of time to secure your next residence before finalizing the sale of your current property. This contingency protects you from being forced to vacate your current home before you have a new one to move into.
5. New Home Builds: The Tailor-Made Dream
Many builders are flexible with contingent sales (see above). Make sure you are represented by a Buyer’s Agent who is knowledgeable about what’s allowed and what’s not for new-home-builds. Builders will typically allow a certain amount of time to get your current home sold first, and then move in seamlessly upon home build completion.
Remember, navigating the dual challenge of buying and selling a home simultaneously doesn’t have to be a solo journey. Our team at Sackin-Stone is here to guide you through every step, making sure your transition is seamless and stress-free. Ready to embark on this journey? Contact us today!