Negotiate a lease back
When there’s little inventory on the market, finding a home to move into can be difficult. Negotiating a lease back after the close of escrow will give you time to identify a new home and it will give you the ability to have the proceeds from the sale of your home in your bank account which will allow you to make strong offers when you identify your next home.
2) Find intermediate housing or short term housing
No one wants to be without a home but sometimes the pressure of finding your next home with a time constraint can be stressful. Take the stress out of it by identifying a short term lease. It will give you the time that you need to make a good decision. You’ll have to move twice but many moving companies can store your personal belongings for a reasonable fee.
3) Consider a seller contingency
No one is forcing you to sell your home. If you’re uncomfortable selling your home without knowing where you’re going, a seller contingency is something that you may want to consider. You’re basically telling a potential buyer that you will sell them your house when you’ve identified a home. For the right buyer, they may be in a position to wait and give you the flexibility
4) Explore the option of a bridge loan
A bridge loan is a short term loan that will allow you to borrow against the equity that you have in your current home. If approved, you can use those funds towards the down payment of your new home without having to sell. Once you’ve closed on your new home, using the proceeds from the sale of your home will pay off the balance. Make sure to check with your lender for details and pricing.
5) Consider a HELOC
Similar to a bridge loan, it’s doesn’t necessarily need to be a short term loan. You can borrow against the equity that’s in your current home which you can use towards the purchase of your new property. Again, make sure to check with your lender for details and pricing.
6) Obtain a gift
Not everyone will have this option but if you can obtain a gift from a family member or friend, this is a good option to consider. Use the gift funds toward your new home without selling and when you’ve successfully sold your home, you have the option to return the gift.
7) Identify an off market option
How many people do you think are out there that are in the same boat as you. They want to sell but they haven’t identified a replacement property. They’ve got two problems. They don’t have a buyer for their home and they haven’t identified a replacement property. You can solve one of those problems if you’re able to find that opportunity.
8) Purchase new construction
Purchasing a brand new home is fairly straight forward. They have homes in their inventory that they release on a regular basis and often times have standing inventory with quick move in dates. Many of them are considering seller contingencies. Make sure to consult your real estate agent and check with each builder and see what options are available to you.
9) Borrow against your 401k
Although your 401k is a retirement fund, you can borrow against it if you want plan on purchasing a primary residence. Make sure to check with your service provider for details to see if this option is available to you.
If you don’t need the equity from your house and can purchase your next home without selling
10) Purchase before you sell
If you have the funds for a down payment on a new home and you can afford the cost of owning two homes at the same time, definitely consider this.
Bonus tip - Working with an experience and resourceful real estate agent will help you determine which one of the above options would be the best fit for you. Experience matters in times like this.
Disclaimer: Make sure to consult with a real estate professional, lender and appropriate service providers to see which of the above options would work best for you. Not every option is good for you so making sure to check with a professional