Here’s how sellers can buy a new home while selling their current one.
It’s been very difficult for buyers to find homes in today’s market. Because of this, many are allowing sellers to stay in the home for a few extra weeks or months after they buy the property. This makes their offer more enticing and also gives sellers the opportunity to find a new place to live. As an even greater bonus, the seller can find a home without contingencies, having to rent a place, and have an easier time with the overall process.
There are two ways this is typically done. First, the buyer gives the seller a “seller possession after closing” agreement. Sellers can ask for this as well, and they’re likely to get it if they’re receiving multiple offers. Buyers are often willing to accept because it helps their offer win without having to tack on more money to the purchase price.
“A few companies will buy your home and allow you to rent it out, essentially letting you take all the time you need to find a new place.”
Second, the seller can sell to an institutional buyer or an “iBuyer.” Some of these will buy your home immediately and still allow you to stay in the home for a few weeks. However, this may not be enough time unless the seller already has another place lined up. We also know a few companies that will buy your home and allow you to rent it out, essentially letting you take all the time you need to find a new place. One even buys your home for more than you paid for it, lets you find a new place to live, sells the home for you, and gives you the proceeds.
There can be some downsides to keep in mind, though. For example, you may have had a $1,200 monthly payment for your $200,000 mortgage and you sell your home for $400,000, you’ll be renting at the $400,000 amount instead of the $200,000 amount. There are also a variety of fees attached to these programs.
If you’d like to know more about these programs, or if you have any questions about selling your home, feel free to reach out to me. I look forward to hearing from you soon.