Moving Up to Your Dream Home: A Comprehensive Guide for Current Homeowners
So, you’ve got this dream of upgrading your current home to a much nicer place, but the whole process of how to go about doing it has you feeling a bit overwhelmed. Get it! Going from where you are now to your dream home can be a bit of a puzzle. But hey, don’t worry – I’ve got your back. This simple guide is here to give you the lowdown and some tricks to make your upgrade a smooth and successful journey.
First things first – let’s talk about your finances. Ideally, you’d have enough funds to snag your new home before saying goodbye to your current one. That way, you skip the stress of waiting on one sale to fund the other. Nice, right? But let’s be real, for most of us regular folks, that’s not the reality. So, let’s check out some options:
Traditional Home Sale Contingency: This classic move means selling your current place before making an offer on your dream spot. Sounds simple, but it can get tricky in hot markets where sellers are bombarded by great offers without strings attached.
Boosting Your Contingency Offer: To boost your chances of getting your purchase offer accepted with a home sale contingency, try listing your current home before submitting offers on your next home. This shows sellers that you’re a prepared buyer and have your ducks in a row. Share progress on the sale of your home by emphasizing the completion of milestones like completed inspection contingency or successful appraisal to ease seller worries. If you’re feeling bold, you can even toss out the home sale contingency (though it’s a bit risky) to make your offer stand out.
Post-Occupancy Clause: In sellers’ markets, sellers control the negotiating power. If you want to buy your next home, but you’re going to sell your current home first. Then actually you’re a seller before you become a buyer. As a seller, you control the terms of the sale. You can include in your listing that you require a post-closing occupancy stay of X weeks or X months to secure your next home. When inventory is low and buyers must find a home, they are willing to be flexible to allow sellers some additional time to move out. Continue if post-occupancy is not a viable solution in your market.
Sell First and Find Temporary Housing: If you’re willing to bear a temporary living situation until you can secure your next home. Then there are the possible options for you:
- Month to Month Rental: provide flexibility for you to stay somewhere while you’re hunting for your next home.
- Crash with Family or Friends: your budget-friendly option if available if they can accommodate you temporarily.
- Airbnb Rentals: daily to weekly rental option.
- Hotel: Last resort if none of the above are available to you.
Creative Strategy: If your current home has serious equity (roughly more than half of it is paid off), you might be able to use a bridge loan or a Home Equity Line of Credit (HELOC). These let you tap into your existing equity to purchase that new home before selling the old one. No domino effect, and you can breathe during the selling process. Of course, the drawback is you will have to pay multiple loans while you own both homes. So don’t take your time selling your old home.
Now, let’s bring in the experts. Dealing with buying and selling at the same time needs a pro real estate agent. They’ll tackle the tricky stuff, negotiate like a boss, and hook you up with the right lenders and loan programs. Trust me, their know-how can make this whole process a breeze.
Key takeaways time:
- Know Your Local Market: Get the lowdown on what’s happening around you.
- Money Matters: Check your financial standing and explore loan options that fit you.
- Get Creative: Be open to creative solutions and temporary living situations.
- Bring in the Pros: A solid real estate agent can make this journey easy.
No need for your dream home journey to be a stress-fest. With the right moves, savvy financial choices, and a little expert guidance, you can turn this transition into an exciting chapter in your homeownership adventure. Remember, knowledge is power – arm yourself with it and own that path to your dream spot!
Oh, and before you go, share this guide with your friends in the same boat! Subscribe for more real talk on the real estate scene. Drop a comment below with your questions or stories – let’s build a community of homeowners in the know!