Leasebacks and contingencies may be the answer you’re looking for.
To move out of the house you just sold and into the house you just bought with no other stops in between, you’ll have to use two important tools: A leaseback and a contingent offer.
The sale of your current home will be normal, but we will need to include a leaseback in the contract, and that allows you to stay in the property for a set amount of time after you’ve closed on it. It’s basically a brief period in which you go from being the home’s owner to a temporary tenant (and the new owner is technically your landlord).
There are some drawbacks to this method, though. Depending on what market you’re in, requiring a leaseback may turn some buyers away; some buyers will want to move into their new house immediately. The drawback is that you’ll suddenly go from paying a super low mortgage to paying market-value rent—that may not sit well with you.
Okay, so your current home is in escrow, and you’ve located that bigger house with the pool that you want. Now you have to make an offer, but you haven’t yet closed on the sale of your current home. This is where you’d submit a contingent offer, which means you're offering to buy someone’s house so long as your own home sale goes off without a hitch.
Contingent offers are fairly common, but they’re definitely not as strong as offers free from any contingencies. A contingent offer communicates a major ‘if,’ and for a lot of sellers, that’s just one ‘if’ too many. You’re basically giving the seller whose house you want to buy two different things to worry about now. Therefore, from the negotiation side of things, you’ll probably lose a bit of leverage. Bear in mind that contingencies can pile up: You could have a sale that’s contingent on another that’s also contingent! Things can get a little hectic sometimes.
Whether or not you should go the route of a contingent offer depends a lot on the type of market we’re in. If it’s a strong seller’s market, then many sellers won’t consider it. However, if buyers have the edge, a seller is much more likely to accept it.
If you have more questions about how these two strategies work, or if you want to discuss whether they’re worth it given your personal situation, feel free to reach out via phone or email. I’m always here to assist you with your real estate needs.