3 Ways You Can Buy and Sell Simultaneously
The old school way of buying and selling no longer works:
Bridge loan
List, get offer, go house hunting
Sell, rent short-term
Watch the video to get the full breakdown
With the current state of our market, the old school way of buying a home when you are going to sell yours simply by being contingent will more than likely result in your offer not getting accepted. With multiple offers on virtually every home right now, contingency on your current home sale is now seen as another level of risk in your offer. But you do have some options when it comes to buying and selling at the same time in this market.
1. Bridge Loan
A bridge loan allows you to tap into the equity of your current home and use that as collateral to buy your next home. A bridge loan is a temporary solution, typically there will be one to two points you’re going to pay the lender for it. This option allows you to buy that next home and list your current home all within a certain period of time. Ultimately granting you the time to move into your new place and focus on this purchase and then go back and list your previous property. This option also makes it so that you only have to move once, directly into your new home, rather than the potential of needing a rental property in-between.
2. List, Get Offer, Go House Hunting
By listing your home, getting an offer in hand and then starting your house hunting, you become a pending contingent buyer. Although you are still contingent, it makes you a stronger buyer because you already have that offer. Including that purchase and sale agreement on your current home makes any offer on your next property much stronger than if your home wasn’t even on the market yet or if it wasn’t already under contract. This offer allows you to start shopping as soon as you have that offer in hand and gives you time up until closing to find your next place. Or, you could even negotiate a rent back to reduce the stress of the time crunch.
3. Sell, Rent Short-Term
If you do go through with selling your home before finding your next purchase, you can do a short-term rental for around six months and use that time to buy a home that makes the most sense for you. With low inventory, the buying process can take a few months and this option allows you that time. It takes the pressure off of buying and selling within a short window. It does have its drawbacks however, as you do have to move twice and you are not able to capture the benefit of any market appreciation in a rental.
Are you ready to take the next steps toward buying or selling your home?
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