How To Buy a Home Before Selling Yours
Three options for people who need to buy a home before selling.
Selling your current home before buying a new one is the conventional way to move. However, depending on your situation, there will be times when buying before you sell is the better option. Whatever your reason, you should know that buying first comes with additional risks, such as paying two mortgages, if your current home takes a long time to sell.
If you’re in a situation where you must buy first before selling, don’t worry. It’s not completely impossible, but it takes some strategic planning to make it happen. Here are three things you can do to help you buy before you sell:
1. Make an offer with a home-sale contingency. By including a home-sale contingency in your offer, you can purchase the new house once your existing one sells successfully. If your current home doesn’t sell within a certain time frame, you can protect your earnest money and cancel the purchase contract without any penalties. To sweeten the deal, your agent can explain to the seller that your house will likely sell fast in the current market.
"Knock and Homeward are changing the way people buy and sell homes."
2. Sign up for the “Cash Is King” program. Many loan officers will offer this program if you’re a client of their company. Here’s how it works: They’ll buy your new house in cash on your behalf. If you get under contract and sell your old property before closing on the new home, they’ll simply reassign the contract to you without any fees. However, if they close the new house before you do, you’ll have to pay a minimal fee.
3. Use a service like Knock or Homeward to make a cash offer. Knock and Homeward are revolutionizing the way people buy and sell homes. These two companies will buy your new home in cash, and if necessary, they will also provide the funds to make repairs on your existing home to increase its value in exchange for a small fee. Once the home sells, you’ll split the proceeds accordingly.
Buying a new home before selling your existing one has its unique challenges, but if you can leverage the three options above and utilize the guidance of an experienced agent, you can come up with the best solutions for your situation. If you want more details about this topic or have any real estate concerns, don’t hesitate to call or email me. I’ll be happy to help.