Option One : Notes & Variations
OPTION ONE: Notes & Variations: If you can’t count on amazing luck, buying and selling at exactly the same time will usually require one of two variations or compromises that allow you to sell at ALMOST the same time.
VARIATION A: Emphasize and prioritize the sale: Put your old house on the market, get an offer in hand for your old house, then quickly find a new house to buy. Then set a closing date as close to your sale closing date as possible (with a rent back if necessary).
PROS:
- You only have to move once.
- You get to live in your own home while searching for a new home.
- You know exactly the price for which your old home will sell when you buy.
- You have the money from the sale of your old home for the down payment on your purchase.
CONS:
- You have to live in your house while it’s for sale (see details above).
- You have to essentially choose from the homes available on the market when you get an offer for your old house, as opposed to waiting for the perfect house to come along.
- You have to negotiate a closing date with your buyer before you know what a seller will agree to for a closing date. You may end up with overlap on one end or the other, so you might end up with rent backs or temporary housing needs.
REQUIRES:
- Willingness to choose a home quickly from available inventory when your home gets an accepted offer.
- Willingness to risk small rent back or temporary housing needs.
VARIATION B: Emphasize and prioritize the PURCHASE: Wait until you find your dream home, write a contingent offer, hope it gets accepted, and if it does put your house on the market as soon as possible.
PROS:
- Same pros as listed above.
CONS:
- You have to live in your house while it’s for sale (see details above).
- Many sellers will not accept a contingent offer, or at least would not prefer them.
- You are in a weak offer and negotiation position and you may lose your dream home because you aren’t in the best position to buy.
REQUIRES:
- Willingness to deal with rejected offers on your dream home because the offer is contingent.
- Willingness to lose your dream house if you can’t find a buyer for your old home fast enough.
- Willingness to live in your home while it’s on the market (see details above).