Do you think you need to sell your existing home/property before buying the next one? Think Again!
Here are some handy tips to help you out along the way based on our success stories!
Look into your loan options
There are a number of options available such as opting for a Home Equity Line for the down payment, or go for a Bridge loan where we come in and cover the loan payments that we collect when you sell your property. There are a wide range of options out there so consult your lender and make a more informed decision!
Opt for a Rent Back
In this situation, you put your property on the market and find yourself a buyer who’s willing to rent you the property after the close of escrow. So for example, in the case of a 30-day escrow, we ask the buyer to rent the property back to you for up to even 90 additional days in certain cases. This gives you the time to get your funds in order as well as going out and finding the right match for your next purchase!
This is considered to be the one of the safest options to go with. This this case, the buyer understands that the close of your house sale is contingent on your finding your next property to buy. There are of course, certain pre-agreed timeframes you set down for such an arrangement. In the event that you don’t find a suitable next home, you don’t have to sell your primary residence.
Have a back up plan
Irrespective of which of these options you go for, in the event that you close your sale without having found your next buy, or are still contemplating the choices you need to have a back up plan, which in our case is generally a long-term Airbnb rental to rent for up to 4 months. As long as you aren’t located along the coast it’s fairly easy to secure one. You should ideally stay in one around the location you want to search for you next home in.
Do reach out to us if you have any further real estate questions!
– Joseph Arendsen & The True Local Realty Group. Your True Local Experts in San Diego.
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