3 Ways to Sell Your House & Buy Another Without Moving Twice (Or How to Avoid a Double Move)
There are three ways to sell your home and buy another home without having to move twice. Sometimes moving twice is a better option, but a lot of people really don't want to do that. If that's you, here are some ways you can sell and buy without the hassle of moving twice:
1. Buy First, Then Sell:
One way to avoid moving twice when you buy a home is to buy your next home BEFORE you sell your current home.
There are two ways to do this...
First, if you can afford to carry two mortgages until your current home sells, you can locate and buy the second home before you list your current home. This option gives you the most flexibility, but you run the risk that your current home doesn't sell (and you're stuck with two homes).
Secondly, you can "buy contingent" (write an offer to buy a home contingent on the sale of your current home). Depending on what sort of market you are in (buyer's market or seller's market), you may have a difficult time finding a seller who is willing to accept a contingent offer.
Be ready to convince the seller that your home will sell quickly.
A second way to sell your home and buy another without moving twice is to incorporate a rent-back agreement into your sales contract.
You would list your home (before you find another home to buy) and find a buyer who is willing to let you stay in the home for a short time after the transaction closes. The most common rent-back time is for one or two months, and you would pay rent to the new owner during that time.
Keep in mind, the buyer of your home wants to move in, so it's not always easy finding a buyer who is willing to let you rent-back. This is a great option that works for a lot of sellers (especially if you need the equity from your current home for your next down payment), but time is limited.
Needless to say, you should work closely and proactively with your buyer's agent to find your next home (while your current home is under contract). With this option, you have to find and close on your next home BEFORE your rent-back term is over if you don't want to move twice.
3. Sell Contingent:
A third way to sell your home and buy another one without moving twice is to sell your home "contingent".
This means your sales contract would say that the sale is CONTINGENT upon you finding another home to buy. If you don't find the home within a certain amount of time, you can cancel the sales contract and the buyer has to find another property.
Buyers typically don't prefer this type of purchase, so this may only work consistently in a pronounced seller's market.
Final Thoughts on How to Avoid a Double Move
Obviously, these sorts of agreements and strategies are tricky, and they can sometimes backfire. Take your time to interview and find top-notch advisers (buyer's agent, seller's agent, loan officer, etc.) to help you through this important transition.
Lastly, selling and buying without moving twice is not always the best way to go. Consult with your real estate agents and design a strategy that works best for you. If you have any questions about selling your home and buying another home without moving twice, feel free to contact me anytime!