Should you sell your current home before buying your next one, or buy first and sell later? If you are planning a move, knowing your options can help you avoid unnecessary financial stress and make the transition smoother. In this video, Katherine covers three ways to line up the two transactions.
1. Make an offer contingent on selling your current home. Your purchase goes forward only once your sale closes, which protects you from carrying two homes but can make your offer less competitive.
2. Buy first and use bridge financing. A bridge loan or similar financing covers the gap so you can close on the new home before the old one sells, at the cost of carrying two properties for a while.
3. Sell first and negotiate a rent-back. You close your sale, then rent the home back from the buyer for an agreed period while you find and close on the next one.
The right strategy depends on your finances and your timeline. Whether you are upsizing, downsizing, or relocating within Orange County, having a plan for both transactions is essential.
Thinking about buying or selling in Orange County? Reach out — Katherine is happy to help you map out both sides of the move. The Buy page FAQ on buying before you sell and the downsizing video on this site cover related ground.
Source: the video's own description of the three options; no figures are cited. Which option is available to you depends on your lender, the purchase contract, and the market at the time; contingent offers, bridge loans, and rent-back agreements each carry terms worth reviewing with your agent and lender.