6 Ways to Correctly Time Your Sale and Purchase
The time has come to sell your home and buy a new one. With this, comes the task of correctly timing your sale with the purchase of your new home. Not an impossible feat, but it certainly can be complex. With a bit of understanding and some planning, it can be successful, especially when considering these 6 items.
Same day closing
Sometimes the stars align and you can time the purchase and sale to close on the same day. The ideal situation would be to sell in the morning and buy in the afternoon. This works best when you are not moving out of town and have the possibility of using the same settlement company for both transactions.
Rent back option
If your new house isn’t ready or won’t be for a couple of months, the rent back option gives you time to stay in the house until you can move in. The new owners receive a per diem amount for rent during the agreed upon timeframe. This figure is usually calculated by taking the principle, interest, taxes, and insurance (PITI) divided by 30 which gives the daily rental rate. Another thing to keep in mind is that some cash will need to be held in escrow as a security deposit to protect the new owners in case there would be any damages.
This would be a great option when the new house is vacant. This allows you to move into your new home prior to owning it. A couple of things to consider with this option is that you should have homeowner’s insurance even though you don’t have ownership and that you will be paying a per diem cost to the owners for the convenience of moving in prior to settlement.
Home of choice contingency
Home of choice contingency allows you to sell your home with the condition that the sale won’t finalize until your new home is found. This can be a bit of a tricky option because you could potentially lose your buyer if you don’t find a home in the allotted time frame. This option is good for a buyer who does not have a specific date range they need to move within.
This is a perfect choice when you are having a new home built or are not sure where exactly you want to move to. Temporary housing would be considered living in a rental, with family or any other temporary solution. Realtor.com offers sound advice – “Don’t let fear rush you.” And temporary housing can help make sure it doesn’t.
House to sell contingency
When you have found your new home, the house to sell contingency allows you time to sell your existing home. In this case, you are writing an offer on a house you want to buy. This builds in a contingency where the seller agrees to wait and give you enough time to sell your home. This can be a little risky as well because if someone else comes in and writes an offer without the contingency, it can kick you out of the running for the home.
Choosing the right option will depend on your personal situation. The HodosGroup of Long and Foster is here to help walk you through the process and decide what will work best for your family.
Tags: contingency, hodosgroup, housing, purchase, sale, temporary, Timing Posted in Buyers, Sellers