I often see people who want to buy a larger home or downsize, but they want to find their replacement home before they sell their current home.
That works fine if you have the cash to do so, but if you are dependent on selling your home in order to buy another, we do have some recommendations for you.
First of all, we are able to control the closing date, so keep that in mind.
You need to have your house on the market before you start looking at homes. Otherwise, it can be difficult to find a seller who is willing to sell their house to you. By not listing your current home, you significantly reduce your pool of homes to choose from, and your buying power goes down. Sellers need an incentive to sell their house to you, especially in this market, where there are a lot of buyers for one home.
The other option is to get your home on the market and then start looking. You can submit offers if your home is on the market. The seller’s agent also has the ability to take a look at your current house, see what price you’re listed at, and ensure that you’re in a price range where you can get your home sold.
The most ideal situation is that you have already accepted an offer on your current house. That gives you more buying power, and it gives the seller the confidence that you can close escrow on their house.
Then, when you buy your next home, you can make it contingent on the sale of your current home. That way, if anything goes wrong during escrow for your current property, you are not obligated to buy that home and you don’t lose the money you put up for earnest money.
On the other end, when we’re selling your home, we can make that contingent on the successful close of escrow for the home you’re buying. That means if anything goes wrong on the buy side, you’re not obligated to close escrow and move out of your house—and you won’t wind up without a home.
Again, we can control the close dates to make sure that you don’t end up without a house.
If you have any other questions about buying or selling at the same time, just give me a call or send me an email. I would be happy to help you!