Selling a home while trying to buy a new one can be a major obstacle. Luckily, there are two options that will keep you from having to pay two mortgages or move twice.
If you are looking to sell your current home and purchase a new one, there are a couple of options that will ensure you don't have to pay two mortgages at the same time or have to move twice.
The first option is to sell your home contingent upon you purchasing your new home. This lets the buyer know that they will not be able to close on your property until you close on your new home. By doing this, you won’t have to pay two mortgages or move twice, but the buyer of your home won’t have the certainty of a closing date, preventing them from being able to lock in an interest rate. Also, if it takes you awhile to find that new home, the buyer could potentially get cold feet and walk away.
The second option is to sell your home and negotiate a rent-back. You would close on the sale of your home in the normal 30-45 day time frame, but then negotiate renting back your home from the buyers for anywhere from 30 to 90 days or longer if need be. That gives you time to make sure you find and are happy with the new home that you’re purchasing. It also gives the buyer the certainty of a closing date so they can lock in their interest rate.
A rent-back would give you the time you need to find your new dream home.
Like the first option, this option keeps you from paying two mortgages or moving twice, but it also eliminates uncertainty for the buyers. It makes you a stronger buyer, as you know your property will close.
If you’d like to see which option would work best for you or you are looking to buy or sell a home, please feel free to give me a call or send me an email. I’m always happy to help.
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