In any real estate market, including San Diego Coastal, selling a home and buying a new one can be a difficult balancing act. A home buyer may want to purchase a home that is for sale; however, they might be (no, they should be) hesitant because they have yet to sell their existing home!
In an ideal world, both transactions would occur simultaneously. However, homebuyers and sellers can get “caught in between” real estate transactions. Here are some tips for increasing the chances of selling and buying at the same time.
BUY ON CONTINGENCY: A common practice in real estate transactin is to have a prior-sale contingency included in the urchase contract on the new home. The contingency provides buyers the opportunity to withdraw from an offer if their current home does not sell by a certain date.
CONSIDER WHETHER TO BUY OR SELL FIRST: There is still a possibility of getting “caught in between” even with a prior-sale contingency in the purchase contract. Therefore, homeowners should consider whether it is better to uy or sell first. It is important to note that most people need to sell their current home in order to qualify for a loan to buy their next home…. especially in the current real estate market.
COORDINATE A LEASE FROM THE BUYER: Many people find themselves in a situation where the sale of their current home has been finalized but the purchase transaction is still not completed for their new home. One way to bridge the gap is to lease their current home from the new owner until it is time to move into their new property.
CONSIDER BRIDGE LOANS: Getting a bridge loan may enable homeowners to move ahead with the purchase of a new home, while still waiting to sell their current home. A Bridge loan means borrowing from the current home’s equity until the proceeds from its sale are obtained.
The most prudent way to handle this situation in today’s market, is to sell, rent and then buy unless you are lucky enough to find a seller willing to wait for your home to sell!
