Many people buy new houses while selling their old ones at the same time because everyone needs somewhere to live while finalizing a sale. Selling and buying within the same time frame are not impossible if you have the right support. Here are essential tips on how to buy a house before selling yours to help you save lots of time and money.
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How to Buy a House Before Selling Yours
If your previous home was perfect but then all the kids left the nest, it is natural to want something new and exciting to celebrate the next phase of your lives. This is what you should do while buying a house before selling.
Research the Market
Before buying and selling a house, you will need to speak to an expert to go through your options. Make sure that the company you pick understands how important this decision is. They should give you expert advice, especially regarding your current home’s price and how quickly it is likely to sell.
You will also need to think of the equity on your current home and how much money you need for a down payment on the new property before receiving any cash from the old one.
If it is a hot seller’s market, then you may get lucky if your current home sells fast before finalizing the deal for your new house. This will boost your cash flow rather than having all your savings tied up in two properties.
Discuss a Sales Contingency
If you buy a property with a sales contingency, you can discuss a clause in your contract to state that if your current home does not sell by a specified date, you can back out of the purchase deal for the new one. Although this is not preferred by sellers with a lot of demand for their properties, you might find someone to accept this deal if they are struggling to find other buyers.
Consider a Bridging Loan
Although most sellers use the money from finalizing their current home sale to buy a new one, you can consider other financing options, especially if the closing dates do not align and the money from your existing home’s sale is not available on time.
A bridging loan has a high interest, but it can quickly fund the down payment for your new home. Then you will need to repay this loan after selling your current house.
Selling a House as Is
Real estate agents may not help you close deals fast enough and charge high commissions, which is why you should consider other firms that offer direct cash offers. This way, you will not need to fix up the property and sell as it is instead of spending more money.
You can also avoid getting tied to more contracts and paperwork that lengthens the process. If you are already googling “how to sell my house as is,” look no further because this company closes deals only when you choose to, so time is always on your side.
You Always Have Options : Buy a House
While seeking help regarding how to buy a house before selling yours, always trust your instincts. Keep in mind that you have tons of options, so you never have to settle to close any deals that make you feel uncomfortable.
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