One of the questions / concerns that my team and I get frequently is that our clients want to move to a new house, but they don’t want to be homeless in the process, which is a valid concern, especially if you have kids or drive a smart car!
Since we are literally pros at this, we do it all the time and in general, we can do this in three ways.
Option 1: Buy Then Sell
This option is by far the easiest from a logistical standpoint for our clients. It’s simple…Buy the house you want to move to. Move. Then sell the old one once you’re moved out. That’s it.
The best part about this is that you get to choose how much time you want to take to get the process done. You can go as slowly or quickly as you choose. The disadvantage of this method is that you will have to either have enough cash on hand to own both houses or you have to be able to qualify for both mortgages and may have to make double payments for a time. If this is not a big deal for you, then this is by far the best way to go.
Option 2: Sell Then Buy
Logistically, this is the most challenging option because you’ll need to move twice. It’s also simple…Sell the house you are currently living in. Move to a rented house or apartment. Then take you time to find the perfect house to buy. Move again.
As you can see this option is only for those couples with a strong marriage and a strong back since you’ll have to move all of your stuff twice. The good news is that you’ll never be at risk of having 2 mortgage payments at the same time and you’ll have the freedom to wait for the right house and not have to settle for what is on the market.
Option 3: Simultaneous Buy and Sell
So, you say that you want it all? Well this option is as close as it gets, though it’s the trickiest for us on the Realtor side of the fence. There are several variations (maybe endless) of this method but in essence you place your house on the market, wait for an offer and negotiate to get a few extra days of possession. Once you are in contract on your home for sale we find your next home and negotiate a contract on that with immediate occupancy and closing on the same day as the house you are selling and Presto-Chango, you close on both houses on the same day and then have a few days after closing to move before you have to turn over possession to the buyers of your home. You could also do this where you find the house first and negotiate that contract before placing yours on the market to sell if you think it will sell fast. This works almost as well and gives you a little less pressure on finding the house to buy.
The best part about this option is that you never have two mortgages at the same time and you get to move once, thereby saving your back and your marriage! As you can imagine, this option tends to be the most difficult to pull off and may cause some added stress with the tight time lines but has the big payout of accomplishing your goal in the shortest timeframe.
While there are a ton of ways to accomplish your goal of trading up or down, my team and I have likely done them all and we can help to guide you to the best way for your situation. If you are even thinking about buying, selling, or investing in real estate in the next year, CALL US, we can help…Helping YOU is What We’re Here to Do!