Contingent on Selling: Is It Possible to Buy a New Home Before Selling Your Current One?

Purchasing a new home while also attempting to sell your current home can be a challenging task, but there is an option available for buyers in this situation: buying a new home contingent on selling yours. The good news is that there is an option for buyers in this situation: buying a new home contingent on selling yours. This means that the purchase of the new home is dependent on the sale of your current home. In this article, we will explore the benefits and drawbacks of this option, as well as some tips for navigating the process successfully.

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Benefits of Buying Contingent on Selling

The biggest benefit of buying a new home contingent on selling yours is that it allows you to make a move without having to worry about carrying two mortgages at once. This is especially helpful for those who are tight on cash or have limited savings. It also allows you to move into your new home without the stress of having to sell your current home quickly, which can often result in a lower selling price.

Another benefit is that it can help you avoid having to move twice. If you were to sell your current home before buying a new one, you would likely have to find a temporary living situation until you could close on your new home. This can be both stressful and expensive. Buying contingent on selling allows you to move straight from your current home into your new one.

Drawbacks of Buying Contingent on Selling

While there are benefits to buying a new home contingent on selling yours, there are also some potential drawbacks to consider. One of the biggest drawbacks is that it can make your offer less appealing to the seller. When a seller receives an offer that is contingent on the sale of another home, they may be hesitant to accept it because they are unsure of when the sale will happen. They may also be concerned that the sale of your current home will fall through, leaving them without a buyer.

Another potential drawback is that it can be more difficult to negotiate the terms of the sale when your offer is contingent on the sale of another home. For example, the seller may be less willing to make repairs or negotiate on the price because they know that you are in a time-sensitive situation.

Tips for Navigating the Process Successfully

If you decide to buy a new home contingent on selling yours, there are some steps you can take to make the process go more smoothly. Here are some tips to keep in mind:

Get pre-approved for a mortgage:

Before you start looking at homes, it’s a good idea to get pre-approved for a mortgage. This will give you a better idea of what you can afford and will make your offer more appealing to sellers.

Price your current home correctly:

One of the biggest factors in how quickly your home sells is its price. Be sure to work with a real estate agent to price your home competitively so that it sells quickly.

Be realistic about your timeline:

When you make an offer on a new home, be realistic about how long it will take to sell your current home. This will help you avoid making unrealistic promises to the seller.

Consider a bridge loan:

If you’re concerned about carrying two mortgages at once, you may want to consider a bridge loan. This type of loan allows you to borrow money to cover the down payment on your new home until your current home sells.

Work with an experienced real estate agent: Buying contingent on selling can be a complex process, so it’s important to work with an experienced real estate agent who has experience with this type of transaction. They can help guide you through the process and negotiate on your behalf.

Finally, buying a new home contingent on selling yours can be a great option for those who need to sell their current home before they can buy a new one. While there are some potential drawbacks to this approach, there are also many benefits. By following the tips outlined in this article and working with an experienced real estate agent, you can navigate the process successfully and make your move as smooth as possible.

It’s also important to note that buying contingent on selling is not the only option available to buyers in this situation. Another option is to sell your current home before buying a new one. While this can be more straightforward, it does come with its own set of challenges, such as finding a temporary living situation and potentially having to rush the sale of your home.

Ultimately, the decision of whether to buy contingent on selling or sell your home first will depend on your individual circumstances and priorities. It’s important to weigh the pros and cons of each approach and work with a real estate agent who can help you make an informed decision.

In addition to the tips outlined above, there are some other things to keep in mind when buying contingent on selling. For example, you may want to include a contingency clause in your offer that specifies the time frame for selling your current home and the consequences if the sale falls through. This can help protect you and ensure that the process stays on track.

It’s also important to be prepared for the possibility that your offer may not be accepted. In a competitive real estate market, sellers may be less willing to accept offers that are contingent on the sale of another home. If your offer is not accepted, don’t give up hope. Continue to work with your real estate agent to find other properties that meet your needs and budget.

TL;DR Buying a new home contingent on selling yours can be a great option for those who need to sell their current home before they can buy a new one. While there are potential drawbacks to this approach, there are also many benefits. By following the tips outlined in this article and working with an experienced real estate agent, you can navigate the process successfully and make your move as smooth as possible.

Updated: May 6, 2023 at 10:40pm

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