How to Buy a New House while Selling your Current Home
Whether you are moving to a new town, or just across town, it can seem very difficult to juggle the process of buying a new house while trying to sell your old home. Though it can certainly be tricky, it is by no means impossible. Here are a few helpful methods that you can implement to make the process go much smoother, such as ...
Temporarily Rent a Home or Condo
Perhaps the most often used method of selling a home and buying another is to simply sell the original house and then live in a rented home or condo for a while afterwards. This will give you the benefit of having as much time as you need to find the perfect new home for you and your family.
However, the downside is that this method will usually involve you having to move your things twice in relatively quick succession.
Rent your Home back from the Buyer
If you want to avoid the hassle of moving twice, another option is to speak with potential new homebuyers of your house and ask if they would be willing to rent it back to you until you can buy a new place. Some buyers will be happy to accommodate you, but others may ask for a discount on the purchase price in order to allow this.
You should speak with your real estate agent first to figure out what the best possible deal will be.
Buy the New House on Contingency
When making a bid on a new home, it is possible to include language into the contract that states that the offer can be withdrawn if you are not able to sell your old home. This is known as buying on contingency. Though this solution certainly solves your problem, the seller may require some convincing.
Again, you can speak with your real estate agent to determine if this is something that the seller would be open to.
Consider taking out a Bridge Loan
Taking out a bridge loan can be an effective way of negotiating the financial side of your move. If you absolutely must close on your new home before you sell your old one, a bridge loan can be used to cover any costs incurred by drawing from the equity in your old home.
However, these loans can be a little costly, this method should only be used as a last resort.
Though the process of buying and selling real estate at the same time is never going to be a walk in the park, you can certainly make it just a little bit more manageable by implementing one of these four helpful solutions.
