Buying While Selling A House-4 Options
In this crazy market we’re in right now, chances are you’ll sell your current home more quickly than you anticipated. You might feel a bit pressured to find your new home and worried about making double house payments.
So how can you make a smooth transition from current house to new? Today, I'’m going to give you 4 options to choose from...
Hi, I’m Lisa Kelly Lakeland Homes and Lifestyles with Premier Realty.
Let’s dive right in and talk about 4 choices you have when trying to transition from your current house to the new home with the least about of stress.
Convert Your Current Home into Rental Property
Some homeowners choose to keep their current home and convert it to a rental property.
If you are fortunate enough to have your down payment and closing costs for the new in the bank, this would be a great option. Before making the decision to rent your home, you should ask yourself:
For example, if you lived in this home as your primary residence for two of the last five years, then you may qualify for up to a $250,000 tax-free gain ($500,000) for married couples.
My advice would be to sit down with a Tax professional before making this choice. If converting your current home into rental property makes financial sense for your family, contact a seasoned Realtor to discuss all your individual circumstances.
Buy Your New Home First and Then Sell
This is the very best scenario..IF you have the income for 2 homes..Temporarily. It certainly would take the pressure off of having to move within a specific time frame.
You could take your time moving from one home to the other. And once you’ve transitioned to the new home, it would just be a matter of selling the old house. Which again, in this hot sellers market, is a lot easier to do than find your new home in the sparce inventory we have right now.
Another great perk of choosing to buy your new home before selling your current home, is you will be in a position to make a stronger offer on your new home., because you will not have any contingencies. This definitely strengthens your offer, especially in this competitive market.
Sell and Buy Concurrently
Most buyers need the proceeds from the sale of their current home in order to close on the new home.
This is possible, but the situation must be carefully orchestrated.
The two most common options to achieve this are:
1) Sell contingent upon finding your new home – meaning, you only sell your home once you actually purchased your new home.
2) Sell and rent back while finding your replacement home – you have to have the new buyers cooperation in this scenario. You sell your home but rent it back from the new homeowners while you find your new home.
In both of these scenarios, you can sell and buy while moving only one time.
These are the two most common options when Selling and Buying at the same time.
For more about selling and buying simultaneously , you’ll want to watch my video where I talk in great detail about several other options that may work beautifully for your family.
Some sellers choose to sell their home first and then rent temporarily or move in with family to save more for a down payment while looking for their new home.
The drawback with this choice is you have to move twice and may having storage costs.
The advantage is, you’d be able to make an offer on your home with no contingencies and can be flexible with time line terms.
If your family has outgrown your current house, is relocating, or is simply looking to make a change, sit down with a Real Estate professional to review your unique situation.
Transitioning from your current home to the new doesn’t have to be stressful, just planned and carefully orchestrated.
I’m Lisa Kelly with Premier Realty. Below in the description you’ll find a links to my updated sellers and buyers guides. I included everything you need to know to make smart decisions when buying and/or selling a house.
Thank you for taking the time to be with me today!