One of the most common questions we get from our clients is “what is the best way to sell our current property and buy a new home?” We have outlined a few scenarios below:
Submit offer contingent upon getting current home under contract and closing current home:
Default timeline to get home under contract is 17 days, can request a longer timeframe/negotiable.
Pros: Knowing which new home and ability to “lock up” before selling current home. Only sell current home if purchasing the new home.
Cons: High percentage of sellers won’t agree to this type of buyer contingency and if so, require the timeline to be as short as possible. Typically, sellers require a higher price to offset the risk of taking their home off the market/possibility of escrow falling out. The marketing time and price of the current home may be less due to the urgency of accepting an offer to meet the buyer contingency timeline.
List current home and once an offer is accepted, submit offer on new home:
Option to build in a seller contingency on the current home to allow time to secure new home (default timeline is 17 days to get into escrow on new home).
Option to build in a rent back to have the ability to close current home and purchase new home, non-contingent and without having to move twice.
Pros: Time to find a buyer at the best possible price, new home seller typically will be more agreeable considering the current home is under contract. With the rent back, it is possible to negotiate a new home without a buyer contingency assuming current home is already closed/in escrow with buyer’s contingencies removed.
Cons: If there is a new home of interest, that home may not be available by the time an acceptable offer on the current home is secured. Without a seller contingency, there is a risk of not finding a new home and having to rent.
Submit offer non-contingent, sell home after close of new home:
Assumption that finances/qualification allows
Pros: Better negotiation on the new home without a buyer contingency. Better opportunity to get a higher price on current home without the rush of finding a buyer quickly. More time/less stress on moving and completing work/upgrades if applicable.
Cons: Not everyone has the ability to qualify on the new home without selling current home. Must factor in carrying costs for the 2nd home overlap and the financial stress of owning 2 homes.
We at The Aaronson Group strive to make the real estate transaction process as painless as possible and look forward to chatting with you about your goals. Don't hesitate to contact us for any questions.