How do you sell your current home in order to buy your next one? Here are your options.
We’re in a seller’s market in Snohomish County, so how do you buy a new home if you already own your current home and need to sell it? Here are four strategies that will help you streamline both transactions and know what your options are.
First, you can make a contingent offer. This means the seller of your next home will have to wait until you sell your current home. If you go this route, you need to be ready to list right away, because you’ll only have about five days to do so. Also, you’ll need to price your home to sell quickly, because there’s nothing stopping the seller from accepting a non-contingent offer in the meantime. The faster you can remove your contingency, the better. Lastly, remember that you have to get your inspections done on your next home before you can complete the sale of your current one.
Your second option is a bridge loan. A bridge loan is pretty much what it sounds like: The bank offers you a loan based on the equity of your current home that enables you to buy your next home without needing to sell first. This is a financially intelligent solution, but keep in mind that you need to put your “old” home on the market quickly because you don’t want to get caught having to pay two mortgages.
Next, you can sell first and then buy. This option is more suitable if you’re seeing a lot of homes being listed that fit your criteria. It’s a good idea to dip your toe in the water to see what the market is doing first. After that, price your current home effectively, get it staged, and make sure your agent markets it well so that it sells quickly. Once you have a pending sale under your belt, it’s much easier to get a seller to accept your offer as a buyer.
The last option you can try is something of a hot topic at the moment: sell to an iBuyer. An iBuyer is a company who makes a cash offer on your home based on your request. From what I’m told, they can make an offer relatively close to market value and close quickly.
You can also elect to work with a standard investor, and I know plenty I’d be happy to refer you to if you’d rather do this. Investors will also offer cash and prefer a quick closing, but they’ll likely make an offer that’s under market value.
If you’d like to know more about what you can do to streamline the process of buying and selling at the same time, give us a call and we’d be happy to help you. We look forward to hearing from you.