Buying and selling a home can be difficult, stressful and time-consuming, especially when you’re trying to do both at the same time. According to Nerd Wallet, the latest numbers revealed that there were some 86 million homeowners in America, which means that many aren’t strangers to the real estate process, but we all have a first time.
If you’re thinking of purchasing a new home and wondering how to manage selling your current home at the same time, these tips will help make it a smoother process.
Plan Your Ideal Schedule
If you and your family aren’t in a serious time crunch to get into a new house and out of your old one, it will definitely be easier to allow things to happen at a slower pace. However, if you need to leave the area quickly or require the money to purchase a new house, your options will be more limited. In fact, you may need to have at least a bit of luck on your side. Either way, it’s a good idea to come up with a plan for the best-case scenario during the transition of homes.
Having a general timeline in your head, or written out on paper, will help you make better decisions as you prepare your current home for sale and decide when to house hunt for a new place. Whether you’re looking at homes for sale in Vancouver, Houston, Miami, or somewhere else, every city’s market moves at a different pace.
Ask Friends and Family for Help
If you have any friends or family that would be willing to let you temporarily move in, this could make that big move a lot easier on your entire household. Having the freedom to empty your current house of all those belongings and get it prepared for sale is a lot easier when you don’t have to be there. That will allow you to hunt for your next house at the same time without losing what could be a significant amount of money.
Arrange a Rent-back Agreement
If you happen to sell your current house before you find a new one or finalize the purchase, many people make it work by arranging for a rent-back agreement from the buyers of your home. This allows the new homeowners to charge rent to the person they bought it from, giving them more time to move out. It’s an option that many people take so that they can focus on getting the money from selling their current home before having to pay for a new one that potentially comes with a smaller mortgage loan.
Rent Your Current Home First
The idea of selling a home before buying a new one can put a lot of stress on people, which is why many opt to buy another house first. After the move is complete, renting out the previous home is a great way to collect monthly passive income towards that new mortgage. Over time, rent payments help bring some financial relief, but it also buys the owner more time to decide if they want to outright sell the property.