7 options necessary to buy a house while selling your current one
Timing a home sale and purchase right can be trickier than you might think; even top real estate agents have to do a lot of research to make great recommendations. The time when the houses are inexpensive and easy to come by may not be the time when you’ll get the best price for your current home. Moving for work, trying to get kids into school at the start of the year, and many other elements of timing can all have an impact.
When you look at the factors that matter to you, you’re probably working to maximize your finances but also minimize hassle and bad timing for your family. Here are the options to consider when you’re buying and selling at almost the same time. One of them may be just what you’re looking for!
1. Buy a house when you’re ready, regardless of selling strategy.
There is something to be said for getting that dream house at the dream price. Yes, you might end up having your old house on the market longer than is totally ideal, but look at the house you’ve gotten!
2. Sell your house when the market looks good, regardless of next-house availability.
If you’re not particularly picky about your next home, it might be worth it just to get your equity out during a hot seller’s market. You can figure out a place to live, or rent for a while, if you can realize a huge gain by selling.
3. Try HomeLight’s program for Trade-In to save stress and money
HomeLight offers a program that allows you to skip expensive bridge loans by selling directly to HomeLight right when you need the cash to finance your new home purchase. You can learn more here!
4. Draw out the closing time frame.
When you find the right home, you might be able to make the closing process a longer window so that you have time to sell your home. Just use the shortest available closing cycle when you do find a buyer.
5. Rent out your current house as you buy another.
6If you can swing the down payment without selling this current house, try renting out your current home while you buy the next house. You can then time the market and sell when the time is more advantageous, even in a year or more, while making money off your home.
6. Home equity loan for a down payment on a new home.
If you need some of your substantial equity to be able to start your new mortgage, a home equity loan may be just the breathing room you need. Then, when you sell your home, you can quickly and fully pay back the loan.
7. Rent Back allows you to stay after selling
Some buyers aren’t all that eager to move in quickly, freeing you to rent from them after the house closes. That gives you a few additional weeks or even months to find your next home, all while selling at the moment that makes the most sense.
As you can see, every sale and purchase of homes will be a little different, and you have to figure out where the sticking points are for you. When you look at all your options, you’re more likely to find an advantageous way to move forward.
