Embarking on the journey of buying and selling a home simultaneously can sometimes be tricky, whether you’re looking to upsize or downsize. Jennifer understands the complexities, and her goal is to simplify the process for our clients, taking into account their financial situation, timeline, and priorities. Let’s explore several strategies to handle these transactions, each with its own set of pros and cons.
Option 1: Buy a New House and List Your Previous Home After Moving Out
- Pros: This approach offers convenience, allowing you to find a new home, move out, and leave your existing home vacant for marketing.
- Cons: Potential downsides include the need for staging, uncertainty about the time your house might sit on the market, and the risk of carrying two mortgages.
Option 2: List Your Current Home, Then Search for Your New Home
- Pros: Secure your next home first and negotiate a leaseback for up to 90 days. Contingent contracts are more acceptable in the current market.
- Cons: A backup plan is essential in case your desired home is not immediately available. Some sellers may prefer a leaseback option, while others may negotiate a contingent contract.
Option 3: Use a Buy-Before-You-Sell Program
- Pros: These programs eliminate the need to qualify for two mortgages and often involve leasing your new property from the company.
- Cons: Additional fees may apply, and market changes can affect the effectiveness of such programs. If the property doesn’t sell within a specified timeframe, it might be purchased at an agreed-upon lesser price.
Option 4: Buy New Construction
- Pros: Explore new construction but be cautious about builder timelines. A backup plan is crucial, considering potential delays.
- Cons: Builder timelines may not always align due to supply chain issues and labor shortages. Compliance with specific timelines is essential, or the contract may be at risk.
Common Q&A Jennifer Often Receives:
- What is a Leaseback? A leaseback involves the buyer becoming the landlord for a specified period, ranging from a few days to up to 90 days.
- Using Proceeds from My Sale: While selling before buying can be orchestrated for a smoother process, consult your preferred lender for alternative options like recasting.
- Short-Term Rental Options: Explore platforms like Airbnb and HomeAway, check for apartments offering shorter lease terms, consider staying with friends or family, or opt for a longer-term lease.
- Do I Have to Stage My House? Staging is recommended for most cases, with its importance varying based on the property, area, market, and price point.
- What is a Contingent Offer? A contingent offer depends on certain conditions, often tied to the sale of the buyer’s current property.
- Buy Before You Sell Options: The viability of these options depends on individual buyers and properties. Consider potential downsides like leaving money on the table and the involvement of these companies in pricing decisions.
Feel free to reach out for personalized advice; Jennifer covers Austin and nearby surrounding areas and can connect you with an agent elsewhere through her extensive local and Kuper Sotheby’s International Realty global referral network.
