By Stephen McCarthy
Are you ready to trade up? You will need a solid strategy on how to make the switch.
You could make an offer on the new home subject to a sale contingency on your current home. On closing day you sell your current house and now the proceeds are available to close on the new house a few hours or a few days later. However in a competitive home buying market Sellers are very reluctant to accept a sale contingency. Early in my career this was pretty common. However in more recent years, with increased competition for quality homes it has become less common.
If you can buy the new place without selling your current place then you have a big advantage. You can make your purchase, move and then bring your 1st home to market. Way easier. But the risk here is you will be buying the new place without knowing the sale price of the current home. What if it is lower than expected? Will this impact your purchase decision?
If you are like the majority of home buyers you will need the proceeds from your 1st home. Now you need to start asking yourself once I sell where will I live until the new place is ready for move in? Maybe you have temporary housing available with family or you can rent for a period of time.
You could ask for Use and Occupancy from your Buyer. In this scenario you close on the current house and then remain in place giving you more time to secure your new home.
Making the transition to the new home can be overwhelming. So working with an experienced real estate agent who will focus on your objectives can save you money, time and stress.
