If you’re like many homeowners, you’re interested in selling your current home to move on to the next chapter of your life BUT you’re afraid your house will sell faster then you can find your replacement home. Who wouldn’t prefer a door to door move over a temporary housing situation? Here are 4 potential solutions to help ease your anxiety and seamlessly move you from your current home to your new home.
1. Buy first. Some are fortunate enough to be in a position to buy then sell. If you don’t just have the cash lying around perhaps you have enough equity in your current home for a bridge loan toward a down payment, or you’re able to borrow money from a retirement account or receive a “gift” to be used as a down payment. Before pursuing this option be sure to speak with your lender if you’ll be financing a portion of the purchase price. There may be certain requirements that need to be met or documentation needed.
2. Rent back. If prospective buyers know up front you need to find a replacement home, many will be happy to work with you on a rent back. A number of details should be agreed upon up front between you and the Buyer if pursuing this option.
3. Extended close. Once again, if prospective buyers know up front you need to find a replacement home you may find one that would agree to a closing further out than 30 days. A number of details should be considered before entering in a contract with a prospective buyer with this option.
4. Conditional sale provision. Just like a buyer who’s contract is contingent upon the sale of their existing home, you can add language into the additional provisions of the contract providing you as the seller an out by a certain date if you haven’t successfully found your replacement home. There are likely fewer buyers who will agree to this provision, but it’s another option to weigh with your REALTOR and prospective buyer.
There are pro’s and con’s to each option. Be sure to consult with your REALTOR to discuss your options and the best way to achieve finding a buyer who is not only flexible but well qualified. For more information and a consultation on this topic, contact Jennifer Blake today!