What if I need to sell my home to afford a new one?

If you need to sell your home in order to afford a new home, the best strategy is to do that: SELL FIRST.

Why? 2 main reasons:

There ARE ways you can become able to afford the new house without selling, like taking out a HELOC (home equity line of credit) loan, or getting a “Bridge” loan.  These loans give you the money to get a new house, and then when you sell your current home, you can pay them off. So while you don’t pay interest for very long, they usually have fees which can cost you thousands of dollars. Selling first prevents this cost.

The other reason you should sell your home before shopping for a new one, is because if you don’t, any offer you submit on a new property will be what is known as a “contingent” or “bumpable” offer. This means that while a seller may accept your offer today, you can be BUMPED out by another offer any time between now and the day you go under contract on your current home. In a “buyer’s market” this is not a big deal. Sellers are happy to have gotten your offer and may not get any more. So you’re not at a big risk of losing this new home. But in a seller’s market like we are in today, sellers generally get multiple offers and are not interested in accepting an offer with no closing date in sight.

What if I sell my home and don’t find a new one?!?

This can certainly be a scary thought. No one wants to end up homeless.

Generally when properties go “under contract” on a home, it takes about 30 days for that contract to “close.” So let’s say you go under contract on your current home (meaning you accepted an offer), does that mean you only have 30 days to find a new house? Not necessarily.

In Oregon, you can “rent back” your current home from the new owners for up to 59 days. This means you can have 2 extra months to find a new home. And depending on the negotiations I do for you, I may be able to get the buyers to offer to let you stay those 2 months for free!

Depending on the market–and the desirability of your home–this option may be a sure thing…or not. So reach out to me and we can discuss what options make the most sense for you. If it does make the most sense for you to get financed to purchase your new home before selling, I know a great lender who can make sure you get the best deal out there.