The process of finding a new home can be challenging enough without worrying about having to sell your current home at the same time. Handling both transactions at once is a mountain of paperwork and details to stay on top of, and some people may try to delay selling their property until the new one is purchased, but the ability to do that always comes down to cash flow.
There is a lucky subsection of buyers who have enough capital at their disposal to buy multiple properties, but your average homebuyer will need the equity from their previous home to purchase a new one.
This, too, comes with its own set of challenges; namely, what do you do if you sell your current home and haven’t found a new one? Or, conversely, what if you find the perfect new home for yourself but can’t unload the current old property?
Use & Occupancy Agreement
In the first instance, you and the buyer of your new home might be able to work out a use-of-occupancy agreement, which essentially means you rent your home back from the new owners until you find a new one. The drawback is that these agreements are typically only short term; the new owner is going to want to take up residence or have the property available for remodeling or renting within a month or so. For longer periods, you’ll most likely have to find short-term rentals or other alternative housing.
The upside to this situation is that you have already removed a big financial burden and, without the contingency of having to sell your home, you can become a stronger buyer and have a better chance of landing the property you want, once you find it.
Make a Contingent Offer
Many buyers guard against the second scenario—wanting to buy a new home but not being able to do so without using the money from the current home sell the old one—by making contingency offers. This is a common practice, but it can make you a less desirable buyer, especially in a hot market. If the owners of a home you want to purchase have multiple offers, they will be more likely to choose one without a contingency because it makes the sale more likely to go through.
Is there a right time between your sale and your purchase?
If you need the equity from your current home to purchase a new one, the best way to go about the process is to do the legwork on your new home first. Find a few properties that could work for your needs and budget, and then put your house on the market. That way if you have to jump on something quickly because your current house home receives and offer quickly, you’ve already got some options.
Bottom line is, there is no way to guarantee that the timing of selling your current home and buying a new one will work out seamlessly, but there are always ways to navigate the process to minimize the stress and financial burden. Let the experts at SR Real Estate Group help you shoulder the workload and give you the peace of mind you need to enter this next phase of life in your new home.
With their Multi-Cultural Background, over 35 years of combined experience selling Real Estate and because they are Licensed in New Jersey, New York and California, Rahul, Smitha and their team can offer global reach. They have lots of experience representing a diverse group of clients, from Local New Jersey Buyers & Sellers to Relocation and International/Foreign Buyers, Sellers and Investors. Rahul and Smitha are exceptionally well-respected Realtors in the industry with high ethical standards and GLOWING REVIEWS. Their team offers a high level of expertise, innovative technology and cutting-edge real estate marketing and sales solutions. They specialize in Morris, Somerset, Essex and Union counties.