Selling a home and buying a new one is a delicate balancing act. For most homeowners, they need to sell their current home in order to buy their new home and the thought of buying/selling at the same time makes them anxious. Most consumers are hesitant to buy a home until their existing home is sold or are hesitant to list their home until they find a home they have an accepted offer on. In an ideal world, both transactions would occur simultaneously. However, many times it’s a juggling act.
With this in mind, the professionals at Harrison Realty Team at Coldwell Banker Premiere Realtors offer several tips on how to increase the likelihood of selling and buying at around the same time and what to do if it becomes a juggling act:
Consider whether to buy or sell first: Homeowners should talk to a mortgage lender to determine whether it is in their best interest to buy or sell first since most need to sell their current home in order to qualify for a loan to buy their next home. Keep in mind that many times a seller won’t accept a on offer on a home that is contingent upon the buyer selling their home (a Hubbard Clause) or they will accept it but the home must be already listed.
Buy/Sell on contingency: An ideal way to prevent getting caught in the juggling act is to have a Hubbard Clause in place on the purchase contract for the new home. It provides the opportunity to withdraw an offer if your existing home does not sell by a certain date. Also, if you’re selling your home you can create a contingency that says that the sale of your home is contingent upon you finding a home of your choice.
Coordinate a lease from the buyer/seller: The sale of a current home is often finalized before the purchase transaction for the new home is completed. There are ways to bridge this gap. One is to lease your current home from the new buyer until your new property is available or lease your new property from the current owner (if they aren’t living there) until the sale is finalized. Either way, an attorney should draw up a contract or lease agreement. This can alleviate a lot of financial and moving headaches, but some buyers/sellers can be hesitant to do this because there are potential pitfalls that may occur and having a renter makes dealing with the pitfalls.
Look into renting: If the buyer/seller is not willing to lease their home, renting is another option. While having to move twice is not ideal, there are rental properties that will provide a month-to-month lease.
Whatever you decide your best option is or if would like to discuss the pros and cons of each option further, Harrison Realty Team is here to help and ensure that your juggling act is seamless, hassle-free, and headache free. Contact us today for your free consultation: 860-539-9076 or firstname.lastname@example.org.
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