November 29th, 2017 10:44 PM by Annette Masterson
In an ideal world, we could all perfectly time the transition between buying a selling a home since most of us will need the money from the sale of our home to use for purchasing our new home. Unfortunately, real estate timetables and transactions can often be tricky and unpredictable, leaving us uncertain in what steps to take first. Some people choose to take their time selling their first home and then scramble to find their dream home after they have a contract on the first. Others may try the opposite approach by putting a contract on a new home first and then hoping that they can quickly unload their first house. Although it’s not an exact science and every situation should be handled differently based on the client, there are a few options of how to make the transition smoothly even if the timing doesn’t work out perfectly.
Buying Contingencies – Buying contingencies don’t often work well in a sellers market as the seller may have multiple offers and the contingency makes your offer less desirable. If your home is already on the market or even better, under contract, including a contingency will be a stronger offer than submitting a contract contingent on a home sale that hasn’t even happened yet.
Carrying Two Loans – If you have the financial resources to do it, putting an offer on the new house and then taking your time to sell the second one, at the risk of carrying two loans, ensures you get the house you want and that you get the best price for your first house, too. This works well for those who have paid off their first house or have the assets required to get the bank to sign off on two home loans at the same time.
Renting Elsewhere – You could sell your house first and be ready with back up housing options. The downside is if you have to sign an extended lease and may need to pay to get out of it early as well as extra moving costs and hassles in moving twice. The upside to this option is the ability to close quickly once you find the house you’re looking for. That’s attractive to most sellers and would make your offer a good one to them.
Renting Your First House – You could also try to sell your home to someone who is willing to rent it back to you until you find a new home. You can even offer this when you are listing your home as it may be an attractive option for someone who has their own flexibility and could use some extra monthly income until they move in.
As you can see, there are many different ways to ensure you can both sell and buy a home without causing too much disruption to your housing situation. Contact me if you’re thinking about how to make this transition and we can talk through ways to make it work for you!
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Annette Masterson is a licensed broker with EXIT Realty Bob Lamb & Associates in Murfreesboro, TN. She has developed one of the most successful real estate teams in Rutherford County, known as Masterson Network, that specializes in new home construction and residential listings and sales throughout Middle Tennessee. You can email Annette at firstname.lastname@example.org or call her at 615-896-5656 (Office) or 615-533-1660 (Cell) for more information.