Are you looking to buy and sell a home at the same time? This is a common situation that many homeowners find themselves in. There are a few different ways that you can do it, depending on your situation. You can either sell first, then buy, or buy first, and then sell. I’ve laid out a few strategies for each option. To learn more about these options and what might work best for you, watch my latest video.
Today we’re going to talk about what you need to do if you’re buying a new residence and you currently have an existing one to sell. You have two options that you can choose from in how to go about doing this.
You can either sell your home first and then buy your new one, or you can buy your second home first and then sell your current one.
With the first option, where you sell your home first and then buy a new one later, there are three major paths that you can go down. One way is to sell your home and find a temporary residence to move into while you find your new home. That’s the most cumbersome strategy because you have to move twice.
The second strategy is to sell your home and ask for post-occupancy in your sale contract, meaning that you can rent your home back from the new homeowners for a period of time while you find a new residence.
The third strategy is to write into the sale contract that your home sale is contingent on your purchasing a new home. This third option is the least ideal because if you aren’t able to find a new home quickly, the buyer may end up backing out of the contract and finding a different place to purchase.
If you want to buy your new home first and then sell your current home later, there are a couple ways that can be done as well. If you have enough money in the bank and a large enough pre-approval from your lender to buy the home of your choice, then go ahead and buy that new home and sell your current home once you’ve moved.
Another way to do it is to write into your offer for a new home that the purchase of your new home is contingent upon the sale of your current one. That’s a tough one again, because it creates pressure to get the home sold and the other party may back out of the deal if your home isn’t sold quick enough.
Another option is to request a bridge loan. If you have enough equity in your home, you have the ability to go to a lender and offer the equity as an advance so that you’re able to get money to buy a new home before you sell your old one. This is a great solution that prevents you from moving twice or helps you avoid potentially deal-breaking contingencies during the whole process.
If there are any other topics that you’d like me to cover or you’re looking to buy or sell a home, give me a call. I’d be happy to help!
Ryan Butler Homes
KW Capital Properties
519 C Street, NE, Washington, DC 20002