What are your options if you need to buy and sell a home at the same time?
Before we answer this question, your first step should be to talk to a lender. Lending guidelines change all the time, so you need to know what you’re qualified to purchase. The last thing you want is to get stuck without a place to live because you sold your first home and then found out you weren’t qualified to buy your next one.
Now, your first—and best—option in this case would be to buy your next home, move into it, and then focus on selling your first home. This is the option with the least amount of hassle, but the problem is, not many people can afford to do it. Since you’re buying your next home while still owning your previous one, you may have to carry two mortgages for quite some time.
If you can’t afford to do so, your next option is to do what’s called a “rent-back.” This means that while you sell your current home, you negotiate a time period with the buyer that allows you to stay in the home and rent it back from them after it’s sold so you can use that time to find and close on a new home. This way, you only have to move once.
Your next option is to purchase a home with a contingent offer, with the contingency being that your first home must sell before you can buy. The challenge with this option, though, is that a lot of sellers won’t entertain contingent offers. To make your offer competitive, you’ll need to at least have your house on the market.
Lastly, you can list your home with a contingency that you need to purchase your next one before you can sell. This is essentially the same concept as the previous option, just in reverse.
Each situation is different and comes with its own set of pros and cons, so if you’d like to know more about this subject, don’t hesitate to reach out to us so we can determine which option is best for you. Most buyers and sellers out there face the same scenario, so remember that you’re not alone.
We look forward to speaking with you!