How To Trade Up Your Home
So you want to move and trade up your home?
How exciting!…Now what?
Let’s look into your options!
We have helped hundreds of people buy and sell homes often at the same time! Let us guide you through all of your options so that we can make this as fun and stress free as possible. Check out our guide to the options you have when you’re already a homeowner but want to buy a new home and sell your old home.
List your current home subject to finding your replacement home.
Let’s start you off with the option that we suggest! This is the option most people choose, it keeps you from owning two homes or zero homes.
One mortgage payment.
Less liquid cash needed as (usually) the down payment for the new home comes from the proceeds of the sale of the old home.
If you don’t find and buy a replacement home, you’re not committed to selling the old home, even if you already have accepted a buyer’s offer.
If you need to sell your existing home in order to buy your new home, this can make your offer less appealing to a seller, especially if they have “non-contingent” offers competing with your offer.
More time constraints and deadlines to navigate than the other options.
You will need to keep the home you’re selling “show-ready” and expect buyers to come view it until you have accepted an offer.
Buy your new home, move into it, list and sell your old home.
This is a great option if you have the cash available for a down payment and can qualify for two loans.
Cost-prohibitive for some people to purchase a home while carrying an existing mortgage.
Down payment funds need to come from a source other than the sale of the existing home.
Potential for two mortgage payments if previous home doesn’t sell right away.
You control your timeline.
You’re not disturbed by potential buyers interrupting your day/evenings/weekends.
No sale of home contingency weakening your offer on your new home.
Sell your existing home and do a short-term rental until you find your new home.
Sell and wait until you find something perfect, then jump on it, cash in hand.
Storage fees may be incurred if you store your furniture/belongings.
This nomadic lifestyle may not be appealing to everyone.
You’ll have to find a suitable short-term rental before your closing date on your old home.
Freedom to take your time to find your new home.
Fewer deadlines and time constraints than the other options.
When you’re ready to offer on your new home, you’ll have cash in hand, ready to go.
Opportunity to scope out different areas and/or home types to really get a good feel for what and where you want to buy.