It’s pretty common that most homeowners struggle with figuring out how to sell their current home and get moved into a new home. Many of them don’t want to move twice. They want to sell their current home and move straight into the new home. They don’t want to be rushed though and they want to make sure they find a great house. It’s easy for me to accomplish this because I do this all the time. That’s my job. There’s really only four options available in this current real estate market and if a homeowner will call me, we can discuss which of these makes the most sense for them.
1) Get pre-qualified for a loan to buy your next home without selling your current home first
This is hands down the most efficient and convenient way to do it, but not everyone can qualify for this option. Typically, you’ll need to have at least 5% cash down payment for the new home and you will need to have a low “debt-to-income ratio.” Basically the lender will want to know you have the income to make both house payments. Using this option gives you the opportunity to take your time and not be in a huge rush to find your new home. Many people choose this option in todays market because they don’t want to get their current home under contract and then feel forced to chose a new home from what’s currently available on the market at that time.
In using this option, some people worry about having to make two house payments. That’s unlikely to happen in this super strong seller’s market because my real estate team can typically get their current home sold very quickly. Now, within this option, there are two additional options to choose from. You can find your new home, lock down a contract, close on the home, and then move into it before putting your current home on the market. Some people choose this option so they won’t have to deal with all the showings. They can also get all their personal items moved out, then repaint rooms, replace carpet, and do repairs pretty easily after the home is empty. The other option is to get your new home under contract and then put your current home on the market pretty quickly afterward. We will find the right buyer quickly, so that way you are almost guaranteed to not make two house payments. We can discuss the option that’s best for you when we meet.
2) Get your current home on the market, then start looking for your new home
This is probably the most common option used. There is no risk of having two house payments because we will sell your current home and buy the new home on the same day. You can also move all, or part, of your current home equity to the new home without any extra out-of-pocket cash for a down payment. We can typically even negotiate a couple of days for you to get moved out before giving possession of your current home to the new buyers.
Most people only have two concerns with this option. The first concern is that they will be forced to find their new home quickly. That’s true, but we can make that a little easier by looking for a buyer that’s willing to give you a closing date that’s 45-60 days out. It takes about 30 days to go through inspections, appraisals, title work, and final underwriting of the loan, so that still gives you a solid two to four weeks to lock down a contract on a new home (contingent on the sale of your current home). Typically, that’s plenty of time and there are many buyers in this market that are willing to give you the closing date of your choice. The second concern is finding the right home, in the right schools, with the right features, and at the right price. This can be challenging in this low inventory market, but we’ve successfully done this for hundreds of our clients in the last few years. I’m confident we can find the right home for your family too.
3) Seller occupancy after closing
Of the four options, this one is the most challenging, but I’ve been able to pull it off several times in the last few years. Basically we are looking for a specific buyer that will purchase your current home and allow you to rent it back from them for another 30-60 days after closing. Honestly, there are very few buyers willing, or able, to do this but they are out there. We just have to find them.
It’s a great option for you as the seller because we will typically close in 30 days and you’ll have your money, but it takes the pressure off of having to quickly find your new home quickly and also having to move twice.
4) Sell your current home and move into a short term rental or with family
Of the four available options, this one is the least attractive. Trust me, I understand that most people don’t want to do this, but if you can’t do option #1 above, this is something you may want to at least consider. This is an option that some people choose when building a brand new home. They want to know for sure that their current home is sold and that they have the equity from that sale sitting in their bank account. This is also an option to discuss if you have very specific needs for the new home. Maybe you’re looking for a lake home, or a golf course community, or you just simply do not want to be rushed into choosing what’s available today.
Actually, there are more options than you may realize. We’ve had some clients rent an apartment or a home for 6 months, but we’ve also had some people rent an AirBnB or VRBO home for one to three months. This is a fantastic option because you can use our moving company and they will put all your stuff in a secured short-term storage facility, then deliver it to the new home after closing. All AirBnB homes already come completely furnished with everything you need. You simply bring your clothes and personal items and everything else is provided in the home. I’ve also found that most of these places will give you a significant discount off their “daily” or “weekly” rate if you rent for a couple months.
Another option is to move into a family members basement or house. I know it’s not the ideal situation, but it’s a short term solution and maybe you pay them some rent or offer to cook some meals for the family. That’s up to you.
If you are thinking about selling, I do hope you’ll call me or one of the very experienced REALTORS® on my team. We would simply like to meet with you and discuss your options, and help you make a decision about what’s right for you. No obligation whatsoever, we just want to talk.