That's it! You're ready to move.

 

Whether it's downsizing, upsizing, upgrading, or just ready for a change, the time has come for you to consider your options for moving to a new home. But - there's a catch. You have a home to sell, and now the process suddenly feels complicated and overwhelming. The truth is, nothing worth doing is going to be easy, but the agents at Umstead & Oak have some tried and true methods for making your dream a reality when selling your home to buy a new one. Let's take a look at some of the most effective tactics for taking the next step to making a move: 

 

1. Buy Before you Sell: This requires connecting with a bank and/or lender to explore your financial options. Buying before you sell allows you to make offers non-contingent on the sale of your current home and typically involves one of three options - either a bridge loan to cover expenses associated with the purchase (down payment, etc.) to be paid of when you sell, a HELOC to unlock the equity in your current home to be paid off when you sell (similar to a bridge loan), or a re-cast of the new mortgage loan once you sell your current home. This is the option I see most frequently in our market.

 

2. Buy & Sell at the Same Time: This process involves prepping your home for sale and collecting the marketing collateral needed to list your home at a moment's notice when you do find the home you'd like to buy. This offer would be contingent on the sale of your current home, however, it would be a stronger contingent sale given we've done the work up front to get the home ready to list. The risks here are really time on market against the timeline to close on your new home, but these can be overcome with appropriate pricing and strong, timely marketing. This is a little less common, but can be easily executed so long as we stay on top of the process and remain flexible with timelines. 

 

3. Sell Before you Buy: This process ensures the sale and releases the funds from your home the traditional way, but adds a little more pressure to the timeline to buy. You can offset this with a lease-back agreement on your current home and/or exploring options for mid-term/short-term accommodations if the timelines can't be overlapped. This also involves storing your belongings if you do need to close on the house sale before you are able to find and close on a new home. This is less-common, but an option if you are open to a temporary landing place if the timelines don't overlap. 

 

4. Third Party Involvement: For an added fee, you can explore using third-party home buying services to help you secure your new home with an all-cash offer to ensure a quick close on the new home. You move in, and then can sell your old home - but the fees tend to be steep and cost-prohibitive. In today's more relaxed market, these don't always make sense for a lot of people, but I want to make sure you know it's an option. This is uncommon, but a good option if you want to avoid competition and have extra cash to spend to make the process convenient for you. 

 

5. Selling to an iBuyer: One option to explore is selling your home to an iBuyer (online buying organization). This is an option I recommend when you need to sell and don't have a lot of time or options that make sense, and their offer after fees and deductions is better than what I could do for you in the open market. With these ibuyers, they typically offer what they think are "reasonable, market-based offers" but charge higher fees for convenience and repairs. I've found, however, that the convenience is nice but expensive, and the potential equity with selling on the open market is left on the table. You're paying a premium for convenience, not unlocking equity or service. 

 

6. Rent Out Your Current Home: This option essentially makes you a landlord, converting your primary residence to an income property you'll need to manage, market, and maintain for use by prospective tenants - but it comes with a lot of caveats. This is a great option for low-equity situations or building your rental portfolio, but doesn't always translate well on the buy-side of the transaction if the goal is to buy a new home to make your primary. Our advice is to consult your lending partner for the nuances associated with renting out your old place to qualify for a new mortgage. There are typically some restrictions, too, for how long you live in your current home with respect to capital gains taxes for when you do sell down the road. Furthermore, some HOA organizations won't allow but a certain percentage of rental units in a given subdivision, so check with your HOA, Lender, and Realtor to make sure this is a viable option for you. 

 

• All of these options will require you to connect with a lender/bank first to understand your buying power and position. This will help me come up with an offer strategy that makes the most sense for your unique situation. 
• You can negotiate a lease-back agreement with any of these options, giving you more time in your current home and expanding your timeline a bit to make the move seamless and more comfortable. The added benefit does require renter's insurance on your end for the duration of your lease, up to 60 days in North Carolina without the need for a separate lease agreement.
• Current market conditions are more favorable for buyers, however it's still a seller's market due to limited inventory - this places you at an advantage to buy and sell for favorable terms on both ends of the transaction. 

Overall, these options (or a combination of these options) are some of the best strategies to help you move into your new home and experience the joy of upgrading or downsizing your current living situation to better suit your needs. Our goal is to minimize the stress or hassle of unlocking and maximizing your potential return on investment. We promise to help you understand your needs and deliver the best possible results.

Ready to make a move? Learn the value of your home by requesting a broker price opinion on your current home - free of charge! Simply visit: Free Home Valuation