KRS Realty LLC

License #: 481.012837

Phone:
618-223-1847
Contact Us

KRS Realty LLC

License #: 481.012837

Phone:
618-223-1847
Contact Us

How do you buy a home while your home is listed?

Buying a new home before selling your current one can be a bit more complex, but it's certainly possible. Here's an overview of the process and some strategies to consider:

  • Bridge Loan or Home Equity Line of Credit (HELOC): These financial options allow you to access the equity in your current home to use as a down payment for your new home. A bridge loan is a short-term loan that covers the gap between buying your new home and selling your old one. A HELOC is a line of credit that uses your home equity as collateral.

  • Contingent Offer: You can make an offer on a new home contingent on the successful sale of your current one. This means you'll proceed with the purchase only if your existing home sells. However, some sellers might be hesitant to accept contingent offers, especially in a competitive market.

  • Rent Back from Buyer: Negotiate with the buyer of your current home to rent it back from them for a specific period after the sale closes. This gives you more time to find and move into your new home.

  • Short-Term Rental: Consider renting a short-term accommodation while you're in between homes. This could be an apartment, a vacation rental, or even staying with friends or family.

  • Purchase with a Home Sale Contingency: You can make an offer on a new home with a home sale contingency. This contingency allows you to back out of the purchase if your current home doesn't sell within a specified time frame.

  • Use Your Savings: If you have substantial savings, you can use them to buy your new home and later replenish your savings account with the proceeds from the sale of your current home.

  • Buy First, Then List Your Home: If you're confident in your ability to carry two mortgages for a period of time, you can buy your new home first and then list your old home for sale. This option requires financial stability and a willingness to manage two properties temporarily.

**Bridge Financing: Your lender may offer bridge financing, which is a short-term loan that covers the down payment for your new home. This loan is typically repaid once your old home sells.

Remember that the best approach for you will depend on your financial situation, the real estate market conditions, and your risk tolerance. It's crucial to consult with a real estate agent and a financial advisor to help you determine the most suitable strategy for your specific circumstances.

Keep in mind that buying a new home before selling your old one can be financially challenging, so be sure to carefully assess the associated costs and risks before proceeding.

Have Questions?