In a perfect world, you sell your old home and buy the new one on the same day. Given that it is virtually impossible to time it that way, here are some things to keep in mind as you navigate the sale of one house with the purchase of another.
- Selling your home before buying a new one minimizes financial hazards.
- Get pre-approved for a loan on the new home prior to putting yours on the market.
- If you’re ready to accept an offer on your home, but haven’t found the right new home, negotiate a long escrow or a rent back. This will give you more time to look for the new home. Otherwise, look for temporary housing. Even if you have to find temporary housing, it’s generally cheaper than two mortgages.
It happens. You’re only thinking of selling, and suddenly the right home shows up. Now you have to sell your old home quickly. Here are some tips on making things work in your favor:
- Negotiating a long escrow on this side of the sale works, too. You can also make the purchase contingent on your house selling. This will work better in a slow market, but it’s worth a try in any market. You never know what may also work best for the seller of your new home.
- Try and schedule the closing date of your current home prior to the closing on your new home. A rent back of your current home until your new homes closes can be a great way to bridge the gap without needing to make a double move. Keep in mind that this needs to be meticulously planned and negotiated upfront when you first receive the offer on your current home and not as an afterthought later when the buyer of your current home can choose to say no. Otherwise, temporary housing is still often a better situation than two mortgages.
- Take a close look at what price you’re going to ask for your home. Make sure it’s realistic in the current market.
As Oregon & SW Washington’s largest and most successful real estate brokerage that sells over 2 Billion in real estate per year, we are experts at this process and welcome the opportunity to discuss your unique situation and how we can best structure your transition.