Many times this is an overwhelming prospect for homeowners looking to upsize, downsize or relocate. Buy Before You Sell can be a tricky process. How do you buy a home when you have a home to sell and need that equity to purchase the new home? The financial aspects can be challenging, as well as the timing.
In the recent market, sellers were able to negotiate leasebacks for the sale of their home, meaning that a buyer would close and then allow them to stay in the property for up to two months while they locate another property. This was offered by buyer to sellers in order to make their offer stand out among other competitive offers. Many times sellers were able to stay for free too!
Curious About Your Home’s Value?
The market is changing fast and it is becoming less attractive for buyers to offer leasebacks to sellers, especially free leasebacks. So if you are thinking of selling and expecting to get a free leaseback, you may find it’s not being offered, especially if you don’t get multiple offers.
One option to accomplish a smooth sell and buy transaction is to utilize the services of a “Bridge Loan” company like Homeward, Orchard and others. There are several different companies out there that offer the same types of programs, but this is one with a good reputation I’d recommend.
In simple terms, Homeward will purchase your new home for cash and you will lease it back from them until you sell your old home. At that time, you will close on the loan for your new home. There is a qualification process and they will need to evaluate your current home’s value, how much equity you have and your financial qualifications. There are some stipulations on the new home value and location too. But that’s what I’m here for, to help you navigate the whole process.
There is a cost for this convenience of course. And other considerations such as increased property taxes on the new home.
Give me a call if you’d like to meet to discuss this option and other option. There are many considerations when deciding to make a move. I’m here to help.
Here’s how the Homeward program works for Buy Before You Sell:
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