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If you have equity in your current home, you could free up cash to cover your down payment, closing costs, and additional expenses while maintaining both properties. A bridge loan makes it possible to finance a new house before selling your current home. Both options may have high interest rates, so take a closer look with a financial advisor before going these routes.
These groups can purchase your old home in as little as 14 days without all the hassle and headache of the open market. Just provide some details about the property, and if it’s eligible, they will make a cash offer to buy the house outright — no showings or marketing necessary. You can even choose your own closing date.
Once you’ve moved into your new place, consider leasing out your old house to a temporary tenant. You could also rent it on Airbnb, VRBO or another short-term rental platform. This will allow you to generate income to maintain the home and pay its mortgage while you look for a permanent buyer. This plan will have two mortgages you are responsible for at the same time.
When submitting an offer on a new house, you can include what’s called a sale contingency. This states that your offer is pending the sale of your current home. If your home doesn’t sell in the specified timeframe, you can back out of the deal unscathed. Though not every seller will agree to these terms, but if the market is slow there’s a chance, they’ll consider it. Not ideal in a seller’s market.
As a Seller, you could also consider a Contingency clause, being that you will accept an offer contingent on you finding another home. This is normally done over a couple month period.
If the buyer of your old house isn’t on a tight timeline, you may be able to negotiate a lease-back. This allows you to “rent” the property from the new owner for a certain amount of time while you look for a new home. You may need to make payments to the buyer in order to do this, or it might mean reducing the sales price or other concessions.
Before you list your home, make sure you have a temporary place to live once the property sells. This could mean living with a friend or family member, or it might mean renting a hotel room for a few months while you look for a new house. Whichever option you choose, have a plan (and financial resources) in place to make it happen.