April 17, 2023 In Videos

How to Buy a New Home Before Selling Your Existing One

How we help our clients buy a new home before selling their old one.

 

Moving to a new home can be an exciting and rewarding experience, but it can also be a stressful one, especially when it comes to the timing of buying and selling your home. Traditionally, people sell their current home before buying a new one. However, there are times when buying before selling is the better option. It could be because of the urgency of finding a new home or wanting to secure your dream home. Whatever the reason, buying first comes with additional risks, such as paying two mortgages if your current home takes longer than expected to sell.

One option is to include a home sale contingency in your offer. This means you can purchase a new home once your existing home sells successfully. If your current home doesn’t sell within a certain timeframe, you can cancel the purchase contract without any penalties. To increase your chances of getting a home sale contingency accepted, your agent can explain to the seller that your house will likely sell fast in the current market.

“There are times when buying before selling is the better option.”

Another option is financing with a bridge loan. A bridge loan is a short-term high-interest loan that uses your existing home as collateral to get a loan for your new home, allowing you to close your bridge loan faster. Make sure to align the closing dates of your buying and selling transactions to avoid paying two mortgages simultaneously.

Companies like ours are revolutionizing the way people buy and sell homes by offering game-changing home loan products that allow you to make competitive cash offers on your dream home before the sale of your current one. In addition, with our flexible moving program, we will sell your home and negotiate for you to live there for up to a year, giving you time to figure out your next purchase.

Buying a new home before selling your existing one has unique challenges. An experienced agent can help you navigate these challenges and come up with the best solutions for your situation. If you have any questions, don’t hesitate to reach out to me by phone or email.