How To Buy Your Next Home, When You Need to Sell

Buying a new home is an exciting adventure, but it can also be a stressful one, especially if you need to sell your current home first to finance your purchase. Fortunately, there are many options available to make this process smoother and less daunting.

Find the Right Agent for You

One of the first things you should do is interview local real estate experts and find an agent that is compatible with you and your needs. Once you have found a trustworthy agent they can help you put together a tailored game plan for your buying/selling journey. There are a lot of moving parts when it comes to buying and selling real estate and everyone's situation is different, so working with a knowledgeable agent will help you find a strategy that works best for you and your unique circumstance.

Make Your Offer Contingent

The classic method of buying when you need to sell is to make your offer on the home you are buying contingent on the sale of your current home. This allows you to terminate on your agreement with your deposit monies if your home doesn't sell before your purchase. This is more risky for a seller, so if you are in a multiple offer situation this option may be ranked lower than an offer without this contingency.

Rent Back

Another strategy that grew very popular during the pandemic was to negotiate a rent back that will  allow you to sell your home, get the proceeds, then continue to live in your home for a set amount of time until you find your next one. Depending the buyer’s financing there may be limits to the length they can offer, but that timeline will be determined prior to being under contract. This option the buyer may ask you to pay a security deposit, rent, and to get insurance.

Recast Loan

Another option is a recast loan, which essentially buys your next home with as little as 5 percent down. Then, when your current home sells, you can take those proceeds and recast them into your mortgage for a better loan-to-value and substantially lower monthly payments.

Home Equity Line of Credit

If you live in your home for some time or have a substantial amount of equity from your property, you can put in a home equity line of credit. This will allow you to access the funds to purchase your next home and then pay off when your home sells.

There are many options for those looking to buy and sell in today's market. With the help of the Moore Maguire real estate team, you can find the solution that works best for you. Remember, there's no one-size-fits-all approach, and it's essential to find a strategy that aligns with your specific needs and goals.

In conclusion, buying and selling a home can be a complex and emotional process. However, with the right guidance and strategies, it can be an enjoyable and fulfilling experience. Don't hesitate to reach out to the Moore Maguire Team to help you navigate the process and find the perfect solution for you throughout Chester, Delaware, Montgomery, and Philadelphia Counties.