When it is time to move up or downsize, you can be faced with a very tricky scenario. You need to sell your current home to recoup your investment, and you may need those funds to put towards your new home. This is when the “what ifs” kick in… What if your home doesn’t sell? What if you find your dream home, but you can’t afford it without the proceeds of your sale? What if your home DOES sell, but you haven’t found a new place to live? What if you get an offer on your home, but it falls through? Buying a new home while selling yours can be difficult to navigate. Here are some words of advice on managing this complex transaction from an experienced Calgary Realtor®.
Realtor® Recommended Strategies For Buying While Selling
There is no magic formula that can guarantee that you will be able to perfectly time the sale of your current home with the purchase of your new home. But there are some options that might make the process a little easier.
A Realtor’s® Options For Selling First
Sell And Hope For The Best
Certain market conditions will make this option more attractive. If the real estate market where you live is a buyer’s market, you will have a great selection of homes for sale.
Negotiate An Extended Closing
If you are worried about finding a home after selling, consider negotiating a closing period of 2 to 3 months. Average closing dates are approximately 4-6 weeks after an accepted offer, but your buyer may appreciate the longer date, especially if they, too, are navigating the selling process of their current home.
Ask Your Buyer For A Rent-Back Clause
The clause would allow you to rent your home from the buyer for a period of time after they take possession. This practice isn’t necessarily common as most buyers are seeking to move into a home they have purchased, but if your buyer has purchased your home as a rental investment property, or if they have another property, they might look upon this request with an open mind. It can even be a way for a buyer to earn some cash towards the mortgage.
A Realtor’s Options For Buying First
Buy And Hope For The Best
If current market conditions favour sellers you might be positioned advantageously to take this chance. In a typical seller’s market, homes can sell quickly, sometimes within days and often above asking price. If you were lucky enough to find a home in this market and have your offer accepted, you can feel pretty confident that you will be able to sell your home in time.
Put In A Conditional Offer
If you find the ideal home, you can always make an offer conditional on the sale of your current home. This means that you and the seller agree upon a date by which your home must sell or you will back out of the offer. These offers are not usually a preferred scenario for sellers – they may wait weeks only to have you back out if your house is not sold. But if your Realtor® can make the case that your home should move quickly, if you have the most attractive offer otherwise, or if the homeowner is not in a rush to sell, this can be a good option.
Consider Bridge Financing
Your lender may be able to offer you a financial solution to help you manage buying and selling concurrently. Bridge financing is a short-term loan that can allow you to finance your purchase with the expectation that the loan will be closed out with the proceeds of the sale of your current home. Depending on your lender, this type of loan could be relatively high-interest, but this small expense may ease the process of closing your purchase before selling your home.
The Best Option When Attempting To Buy And Sell At The Same Time Is A Calgary Realtor®
Before you decide to sell first, buy first, or just wing it, speak to a Realtor®. An experienced agent will be able to give you insight into current real estate market conditions, prepare a comparative analysis to homes that are currently for sale or that have recently sold, determine the most likely price at which your home could sell, and how quickly you can expect it to. Taking your goals for selling and buying (move up or downsizing) into consideration, a Realtor® can personalize a strategy to ease the process of selling and buying and help you move into your new home. If you need to sell your current home to find your next dream home, consider a complimentary consultation with the team of Realtors® at the Tanya Eklund Group. By partnering with us to sell and buy your homes, you can leverage all of the information and insight we offer to make the best decision to protect your current investment and succeed with your next one. We are committed to transparency and client education and to selling your home for the most optimal price and terms. We are a strong partner to guide you through the complexities of selling and buying at the same time in Calgary. To learn more about the benefits of working with a Calgary Realtor®, connect with our team by calling (403) 863-7434 or through our contact form. Let’s get your home sold together!