Buying And Selling a home At The Same Time
So you want to buy a new home but you already own a home? With multiple offers giving sellers more options, purchasing a home contingent on the sale of your current home has become a thing of the past. But don’t despair, here are 3 ways current homeowners can buy in this market:
1. Buy your new home first.
We’ll get this option out of the way first. The easiest way to balance buying a new home and selling your current one at the same time would be to buy your new home first and then sell your current home.
This is not the most accessible option because it does require you to be able to afford (and financially qualify to own two homes at once.) You will also need to have closing costs and the down payment for your new home; the good news is you may be able to pull this from the equity in your current home.
And just because you can afford two homes doesn’t mean that you will end up owning two homes. As soon as you secure your new home, we can take advantage of the seller’s market to hang a sold sign on your current home in record time.
Sounds great, right? This option hinges on your comfort owning two homes and your financial capability to qualify for the second home purchase, which is why talking with your favourite mortgage specialist is always the best way to start your home search.
Hot Tip: Use a bridge loan to avoid having to move twice.
Want to avoid home limbo while buying and selling at the same time? A bridge loan may be your secret weapon. 🧨A bridge loan will allow you you to pay for your new home before you receive the funds from the sale of your current home. That being said you will need a firm and binding offer on your current home to qualify for bridge financing.
2. Sell first, and make the sale contingent on finding a new home.
With first-time homebuyers at an all-time high, your chances of finding a buyer who’s willing and able to wait are high. Make your sale contingent on finding and closing on a new home to give yourself the time you need.
This option sounds too good to be true but there is a downside; having the sale conditional on finding your next home will likely result in a lower sale price. The key to maximizing your sale price is maximizing the number of buyers interested in your property and this condition will definitely deter some buyers.
3. Sell first, rent while waiting to buy.
This is often the least stressful option available when you’re looking to move from one home to a new one without balancing closing dates. This allows you to take your time shopping for your perfect new home without worrying about having someone waiting to move into your current home!
Hot Tip: Try to negotiate a month-to-month lease with your new landlord.
A short-term commitment will allow you to move quickly when the right house comes up.
Have questions about how you can balance selling your current home while buying a new one? Comment below or contact me to set up a free consultation.
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Real Estate Advisor based in Halifax, Nova Scotia. I help people buy and sell homes with Engel & Völkers.