Option 1: 

Sell your current home first, and use the proceeds of sale to purchase your next home

With this option, it is helpful to try to structure the contract for the sale of your home in a way that maximizes your flexibility for your purchase. It may be necessary to price competitively to get these terms.

Recommended offer terms to request from buyer:

• Minimal contingencies with short timeframes (14 days max)

• 60 day post-settlement occupancy

Pros: You will have any proceeds from your sale to apply to your purchase. You won’t have 2 housing payments at the same time if it takes longer than expected to sell your home.

Cons: You will have a limited amount of time to find the home that you want to buy and ratify a contract (usually 2-4 weeks). There is a risk of not finding a home, or not ratifying a contract, in which case you may find yourself making sacrifices that you didn’t intend to make, or opting for a plan B of a temporary housing arrangement. 

Who should consider this option: If you think that it will be easier to buy than sell. If the sale of your home may take an unpredictable amount of time, and you feel confident that you will be able to find a home that you want to purchase in a short amount of time. 

Tips:

• Start looking at homes before you list your house for sale. Do your home shopping homework in advance and define what you are looking for and where you are most likely to find it.

• Have a plan B in the event that you aren’t able to purchase in the necessary timeframe - this could be staying with family/friends, or a short term rental

 Option 2: 

Buy your new home first, then sell your existing home. 

With this option, you’ll want to first check with your lender to see if you are able to qualify for the financing that you need to purchase the home you want to buy, without selling your home first. There are specialized loan products that allow you to apply the proceeds of your sale and pay off a portion of your mortgage at a later date without too much of a financial penalty. 

Pros: Flexible timing for your purchase. You can wait until you find the perfect house (and ratify that contract) before listing your home for sale

Cons: Having 2 mortgages can be expensive, particularly at a time when finances might be tight. You may not end up with exactly the same mortgage terms that you would have if you had sold your home first. 

Who should consider this option: If you are financially able. If you think that it may take you a while (or a few offers) to ratify a contract on the home that you want to purchase. If you are considering purchasing during a time of year when new listings/inventory is very low.

Tips:

• Decide in advance if you want to list your home for sale before or after you move 

• Have a clear plan and strategy for pre-listing preparation

• If your goal is to minimize the time that you have 2 mortgages (by listing your home for sale ASAP after ratifying a contract on your new home) we can prepare your home for sale and have photos taken, marketing created in advance.

 Option 3: 

Purchase a new home contingent on the sale of your existing home. 

Once a common scenario, it is now very rare due to the fact that it is challenging to find a seller who is willing to consider an offer contingent on the sale of a home.

Pros: You are protected if the sale of your home falls through and not obligated to complete the purchase of your new home. 

Cons: The contingency requires that your home is under contract without any contingencies remaining. 

Who should consider this option: If you find a situation or seller where they are willing to consider a sale of home contingency, then this is worth considering.