So, you have decided to sell your home before you buy your new place. Here’s the common path most people follow – and a few killer tips along the way for selling your home quickly and for top dollar.
When you do sell your current home, you will want to be able to buy another home quickly. The best approach is to narrow your search down to specific areas before you list your current house for sale.
Spend some time with your real estate advisor to discuss your needs and your desires. Get comfortable with specific neighborhoods and scout out available inventory. You want to make sure you have identified enough available homes that you like once your home goes under contract. You may even want to go out “house hunting” before you are in your active search to get an idea of whether you feel content with what your price range and location gets you.
List Your Current Home
Now, take the plunge. Have your real estate advisor list your home for sale. Just make sure you don’t list before your home is ready. Do what needs to be done to make the sale happen quickly and for top dollar.
When you do get an offer, try to push back the closing date. The average time between an offer to closing is typically 3 to 5 weeks. The closing date, however, is always subject to negotiation. If the buyers really want your home, they will probably be as accommodating as possible. This strategy is likely to be more palatable than putting a contingency in the contract that allows you to find suitable housing before you sell.
Or, you can pay rent to the new owners for a defined period of time. A rent-back provision is an agreement that allows you to keep living in the home after the sale closes (typically 30-60 days). This option can give you more time to shop for your new home, and it gives you access to the money from your sale. Keep in mind that this option works best in a seller’s market, where buyers have to be more flexible with contract terms to get the home they want. Some motivated buyers in a seller’s market may even offer a free rent back.
Make an Offer
When you get an offer on your home, you can then make your own offer on a home that you want. Structure your dates in the contract to limit your risk as much as possible. For example, you will want to make your financing contingency follow the financing contingency date that your buyer has in the contract to purchase your home. As long as both offers go through, you can arrange to sell and then buy shortly after.
When you find a house that you love, you can try to submit an offer with a settlement contingency, which means you’ll buy the home contingent on the sale of your existing home closing. But in a hot market, sellers may opt to accept another offer that has no contingency.
Believe it or not, the majority of homeowners actually manage to buy and sell a house without even needing to rent temporary housing. You, too, can do it.
Let me know if I can help!