5 strategies for selling and buying at the same time
The logistics of selling and buying at the same time can be daunting. It’s good to start with clarity on your options, so you can choose the best strategy for you.
1. Buy First | Not Contingent on selling your current home
Purchase your new home first without a contingency to sell your current home. If you need to tap into the equity in your current home to make this work, you can look into Bridge Loans.
PROS:
Purchase at your leisure
Easier to get offer on new home accepted
Can be logistically the easiest
CONS:
No guarantee re: current home sales price
Possibility of 2 mortgages for a time
Can be financially challenging
2. Buy First | Contingent on selling your current home
Purchase your new home first with a contingency to sell your current home. If your current home doesn’t sell, you are not committed to purchase the new home.
PROS:
Financially safe and non-committing
Use $ from sale towards purchase
CONS:
Can be challenging to get offers on new home accepted
Puts stress on selling timeline
Puts additional pressure on pricing the home you’re selling
3. Sell First | Non-Contingent on selling current home
Sell your current home first without a contingency to purchase a new home.
PROS:
Know exactly what your home sells for
Use $ from sale towards purchase
CONS:
Puts stress on purchasing timeline
Potential to close on home sale without having a new home to move to
Possibility of moving twice
4. Sell First | Contingent on selling current home
Sell your current home first with a contingency to purchase a new home.
PROS:
You don’t sell your home if can’t find a new one you love
Use $ from sale towards purchase
CONS:
Puts stress on purchasing timeline
Drastically narrows the pool of buyers for your sale
If you don’t find a home to purchase, it’s a lot of work for zero results
5. Don’t sell your home, Rent it
Another option for your consideration: Perhaps you don’t sell your current home, and instead keep it as an investment property?
PROS:
If your current home is at a low interest rate, you can keep the great loan on the property, making it more likely to cashflow
Keep current home and continue to build equity
Easy way to enter into real estate investing
If you don’t like being a landlord, you can sell under the 2/5 rule.
CONS:
May be challenging to come up with down payment for new home, without equity from current home
You may not want to be a landlord at all
You may not have the time or capacity to own a rental
