Can I Sell Now And Buy Later?
The current market has a lot of people wanting to sell their home for top dollar. That sounds great, but once you sell, where do you go? We get asked this question about selling now and buying later, and wanted to share three potential solutions that allow you to sell your current home while you navigate buying at the same time.
1. Sell and Rent Back
This is just like it sounds. In this scenario, you sell your current home but negotiate a fixed rate and period of time in which you rent it back from the new owner.
2. Contingency Sale
Using this tactic, you and a buyer agree on the sale of your home, but that sale is contingent on you purchasing a new home so you have somewhere to go. This kind of agreement comes with a specific timeframe, but allows you to halt the sale of your home if you’re not finding a new place to live.
3. Home Equity Line of Credit or Bridge Loan
If you want to sell to take advantage of the market, but your finances aren’t exactly there, you can use the equity in your current home to finance the down payment on a new place. You can get a home equity line of credit using your current home as collateral. Once sold, your proceeds repay the HELOC. Similarly, a bridge loan can helps “bridge” the gap between now and when your home is sold, however this is a personal loan and is also repaid whenever your current home is sold.
This market is too hot to not at least consider selling. There are tools you can take advantage of that might mean you won’t have to immediately buy, or you might be able to move from a seller’s market to a buyer’s market. The first step is reaching out to figure out what your options are, and whether or not these tools make sense for what you want to accomplish. Partnering with a neighborhood expert to explore, discuss, and answer questions will help you figure out your unique situation and the best path forward.