Here are four ways you can buy and sell a home at the same time.
Do you need to buy and sell a home at the same time? In the past, this process was a lot easier. You’d shop for homes, and when you found one you really liked, you’d make an offer contingent on the sale of your current house. However, our market is very competitive; it’s rare to find a seller willing to accept a home-sale contingency. Fortunately, you still have options, and I want to go over a few of them with you:
1. Obtain private financing. This is sometimes called a bridge loan. You can go through a private bank or private lender, and your real estate agent should have a good referral. Essentially, these loans bridge the gap between the purchase of your new home and selling your previous one. This is a flexible loan type and is usually interest only. Once you move into your new home, you can sell your old one and pay off your bridge loan.
2. Use a home equity line of credit (HELOC). If you’ve lived in your home for a while, you probably have a lot of equity. A HELOC lets you take that equity out of your house before you sell, and you can use this money to buy your new home. The issue is that HELOCs require a long financing process, so it can be costly and time-consuming if you aren’t prepared.
3. Sell to an iBuyer. There are plenty of companies out there who want to buy your home right now for cash with no strings attached. Many will let you rent back your old property while you shop for your new place.
4. Sell your home first and negotiate for time. Since we’re in a strong seller’s market, you can likely get favorable terms. You could ask your buyer for a rent-back agreement or long closing so that you have plenty of time to find a new home after you sell.
Selling and buying can be a difficult process, but you have options. If you have questions, please call or email me. I’d love to discuss your situation with you!