Your Options To Buy Before You Sell

Here are some of your options when buying before you sell.

What are some other options you have if you need to sell your home before you can buy? Let’s talk about it.

Let’s say you are approved for an $800,000 loan, but you really want a home in the $1 million range. This is when you reach out to your rich family and friends to see if they have any funds you can borrow to buy your new home. When you sell your old home, you’ll have plenty of money to pay them back. Of course, this isn’t an option for everyone, but if you have the opportunity, I suggest you take it.

You could also sell your current house and move into a short-term rental. This lets you have more strength when shopping around, and you’ll know exactly how much you can spend on your new home.

“In my opinion, bridge loans are overhyped.”

You can also sell your current home and arrange a long rent-back agreement. In today’s good market, you can reasonably get a 60-day period to look for a new home. The bad news is that if you can’t find a home in that period, you’ll probably have to rent somewhere temporarily.

Let’s say you make a lot of money, but you don’t have a ton of money saved up for a down payment. You could arrange a loan where you only have to pay five or 10% down. After you sell your old house, you can use the funds from that to rearrange your loan and put more money down.

You could also use a bridge loan, but I think these are overhyped. The numbers usually aren’t very good, so if you can borrow from a friend, I recommend taking that option. You could also use hard money, but this is a pretty risky option.

If you have any questions about today’s video, please call or email me. I am always willing to help.