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Selling your current home while purchasing the next one can feel like a balancing act, but a little preparation goes a long way. Below are five strategies that streamline the process and help you choose the best path forward.1. Traditional Contingent Sale
You list your home and make an offer on a new property that’s contingent upon selling your existing one.
Pros: Avoid paying two mortgages at once.
Cons: In a competitive real estate market, sellers often prefer offers without contingencies.
Learn More: Tips on Handling Contingent Offers
2. Sell First, Then Buy
Complete the sale of your current property before purchasing the next one.
Pros: You’ll know your exact budget once you close, and you avoid juggling two mortgages.
Cons: A gap between closings could mean you need temporary housing.
Related Reading: How to Prepare Your Home for Sale
3. Buy First, Then Sell
If you spot your dream home, you might opt to purchase it before selling your current one.
Pros: You can move at your own pace and avoid timing conflicts.
Cons: Potentially carrying two mortgages until your old home sells can create financial stress.
Learn More: Balancing Two Mortgages
4. Using a Bridge Loan
A short-term loan that covers your down payment while you await the sale of your existing property.
Pros: Immediate funding to secure your next home without waiting for your current one to sell.
Cons: Higher interest rates and fees can add extra expense.
Further Insight: Understanding Bridge Loans
5. Rent Back from Your Buyer
Negotiate a “post-settlement occupancy” that allows you to remain in your sold home for a brief period.
Pros: Offers extra time to transition without rushing into a new property.
Cons: You’ll pay rent to the new owner, increasing your total costs.
More Info: Rent-Back Agreements Explained
Each of these options has its pros and cons, so it’s wise to weigh your finances, timeline, and market conditions before making a decision. Your realtor can perform a comparative market analysis to estimate your home’s value, helping you plan your sale and purchase budget effectively.
If you have any questions or need further guidance, please feel free to reach out. I’m here to assist you every step of the way!
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