Some clients cannot get approved for a new loan until they sell their current home. This can be a tricky process, but you do have a few different options.
The first (and least effective) way is to find a house and submit an offer that’s contingent on the sale of your home. In a seller’s market, this probably won’t work. The seller won’t want to give up control of the selling process. They don’t want to rely on your home sale in order for theirs to go through. Plus, in our current market, there will probably be other, noncontingent buyers trying to buy the same home. Their offers will appear much smoother.
Your other choice is to list your home first, find a buyer, go under contract, and then make the sale of your current home contingent on finding your next home. When you do find your next home, you will have to make a contingent offer. However, you can tell the seller that you are already in escrow and that your home sale will close in 30 or 40 days. That offer is much stronger than the first option, and you have a much better chance of getting it accepted.
You can also list your house first, find a buyer, go under contract, and negotiate for a rent back. Basically, your buyer would allow you to rent your current home from them for three or four months. That would give you enough time to get approved and find your next home.
Finally, you can sell your first house and temporarily rent a home for six to 12 months. Try to rent a home in the area that you want to purchase in.
When you have to sell your home before you can buy another, there are a lot of different parts to juggle. Don’t go through this process alone. As your real estate agent, I’m here to help.
If you have any other questions about this process, please don’t hesitate to give me a call or send me an email. I look forward to hearing from you!