Are you considering buying a new home but worried about selling your current one first? In today’s fast-moving real estate market, you don’t have to choose between missing out on your dream home or juggling two mortgages. With the right strategy, you can secure your next home without the stress of selling first.
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How to Buy Your Next Home Without Selling First – Expert Strategies Thinking about buying your next home but worried about selling first? In today’s competitive real estate market, you don’t have to choose between missing out on your dream home or juggling two mortgages.
Step 1: Get Your Finances in Order
Before making a move, take these crucial financial steps:
✔ Get a Home Value Analysis – Knowing your current home is worth will help you understand your budget for the next one. Local real estate experts in Hudson, WI, can provide a free market analysis.
✔ Have an expert realtor perform a Seller’s Estimated Net Sheet – illustrating what your net minus all closing costs will look like following the closing on your home.
✔ Talk to a Loan Officer – Explore financing options that allow you to buy before selling. A trusted lender can guide you through bridge loans, HELOCs, and recasting options.
✔ Obtain Pre-Approval – A pre-approval letter strengthens your offer, making you a serious buyer in a competitive market.
The better prepared you are before the selling/buying, the smoother the transition will be!
Step 2: Prepare Your Home for Sale
Since you’ll be selling soon, make sure your home is:
✔ Have a knowledgeable realtor assess your home for readiness for sale. What repair work is needed?
✔ Elicit the assistance of a professional staging professional to help declutter & stage your home for a great first impression
✔ Professionally photographed for eye-catching online listings
✔ Under a signed listing contract with a successful and knowledgeable realtor to hit the market fast
Having your home ready to list immediately after securing your next home minimizes the risk of carrying two mortgages.
Two Main Strategies for Buying Before Selling
1. Buying Without a Contingency – The Strongest Offer
Sellers prefer offers that aren’t dependent on another home selling first. If you can buy without a contingency, your offer will be more attractive. Here are some ways to achieve this:
✔ Use a HELOC (Home Equity Line of Credit) – Tap into your current home’s equity for a down payment.
✔ Consider a Bridge Loan – A short-term loan to cover your next purchase while selling your current home.
✔ Utilize Temporary Tax-Free IRA Funds – You can use retirement funds for your purchase if eligible.
✔ Explore a Mortgage Recasting Option – Buy now and apply proceeds from your home sale later to adjust your mortgage balance.
Your loan officer can help you determine the best solution based on your financial situation.
2. Buying With a Contingency – A Possible Alternative
If you can’t buy without selling first, you may submit a contingent offer. However, contingent offers are less competitive in a seller’s market as once the seller executes the purchase agreement, they are legally locked into a contract with the buyer without escape options. To improve your chances:
✔ List your home as soon as your offer is accepted
✔ Price your home competitively for a fast sale
✔ Be flexible with timelines – extend the closing date on the home purchase to allow sufficient time to sell your existing home and close on the same day.
While this approach can work, your chances increase significantly should you have a strong and experienced realtor.
What’s Next?
✔ Request a free home valuation – Get an accurate idea of your current home’s worth.
✔ Seller’s Estimated Net Sheet – have realtor show your estimated net proceeds at closing based on most likely sale price minus closing expenses.
✔ Talk to a lender – Explore financing options tailored to your needs.
✔ Prepare your home – Declutter, make updates, and get it listing-ready.
With expert guidance and a solid strategy, buying before selling is possible! If you’re considering a move in/out of Hudson, WI, or Western WI, contact us today for a customized plan to help you purchase your next home stress-free.
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