In a perfect world, you sell your old home and buy the new one on the same day. Given that it can be difficult to always time it that way, here are some things to keep in mind as you negotiate the sale of one house with the purchase of another.
Selling your home before buying a new one minimizes financial hazards. Even if you have to find temporary housing, it’s generally cheaper than two mortgages.
Get pre-approved for a loan on the new home.
If you’re ready to accept an offer on your home, but haven’t found the right new home, negotiate a long escrow or a sale/lease back. This will give you more time to look for the new home. Otherwise, look for temporary housing.
Buying First It happens. You’re only thinking of selling, and suddenly the right home shows up. Now you have to sell your old home quickly. Here are some tips on making things work in your favor:
Negotiating a long escrow on this side of the sale works, too. You can also make the purchase contingent on your house selling. This will work better in a slow market, but it’s worth a try in any market. You never know what may also work best for the seller of your new home.
Try and schedule the closing date of your current home prior to the closing on your new home. Temporary housing is generally a better situation than two mortgages.
Take a close look at what price you’re going to ask for your home. Make sure it’s realistic in the current market.