TIPS FOR SELLING YOUR CURRENT HOME WHILE BUYING A NEW HOME
Whether you’re looking for your second home or your fourth, buying and selling homes at the same time can be an exciting if not challenging proposition. There are many elements involved in the process, particularly when it comes to financing.
As you navigate through the journey of buying a new home, while possibly selling your current one, you may have questions. As one of the most experienced home builders in the Tr-State area, Thompson Homes has some answers. We’re here to share some insight into the process and make your homebuying experience as easy as possible.
How Do I Buy A New Home While Selling My Home?
As the housing market loosens up, prospective homebuyers who had put their real estate plans on hold are once again deciding to move ahead with purchasing a new home. This means there are legions of people wondering how to buy a home while also selling a home.
At Thompson Homes, we know that building or buying a new home is an investment, acting as both a financial and a lifestyle decision. Selling your current home and buying another home at the same time is a feat in multitasking, and timing is everything.
If you are considering purchasing a new construction home, getting an estimated timeline on the completion of your new home is vital, as it factors in the sale of your current home. You’ll want to time the sale of your current home to close roughly at the same time as your new home’s completion in order to avoid:
- Having to pay two mortgages and the cost of upkeep on both properties
OR
- Having no place to live and the costs of putting your things in storage and then moving them again later.
With planning and the right financing, you can time the sale and the purchase in the way that works best. Whether you are selling your current home first or buying your new home first, the steps you need to take are the same.
- Prepare Your Current Home. Getting your home ready to sell is important. Even if you’re months from listing it, get started decluttering and making cosmetic fixes and any necessary repairs. Consider freshening up rooms with a new coat of paint, and installing new hardware on doors and drawers. A professional cleaning is a great idea, too.
- Prepare Your Finances. Evaluate your financial situation. Work with a mortgage lender to get pre-approved so you can move quickly when you find your new home. With pre-approval, you’ll know how much you can afford, especially if you’re looking at a more expensive property.
- List Your Current Home. When you list with a professional real estate agent, they usually help with:
- Staging | They’ll find a photographer and staging expert so your home looks its best.
- Showing | They’ll help find potential buyers, list open houses, and show the home.
- Pricing | They’ll use their knowledge of the neighborhood and the market to price the home so it moves.
- Identify A Down Payment. Financing the purchase of another home may require a new mortgage and a down payment of 3 to 20%. Here are some options to consider before you start the financing process.
- HELOC | A home equity line of credit (HELOC) is one way to get the cash for a down payment. A HELOC uses the value of a home as collateral for the line of credit. When you take out a HELOC, you can use the funds as the down payment on your new home. You can repay the HELOC with the proceeds when you sell your current home.
- Bridge Loan | A bridge loan is a short-term loan designed to cover the gap between purchasing a new home, selling your old one, and securing permanent financing. You can repay the loan when you close on your old house. These loans may have interest rates that are slightly higher than a first mortgage. They don’t have the tax-deductible advantages of mortgages.
- Sales contingency | A sales contingency — a clause in the sale and purchase agreement signed once an offer is accepted — indicates that the purchase of a new home is contingent upon the sale of the current one. While not ideal, it gives you a little maneuvering room, so you can be sure that your financing and your new home’s completion/availability date are in order.
Simply The Best Home Builder in the Tri-State Area
Thompson Homes was founded with a strong desire to build the best custom homes in the Owensboro, Daviess County area. Over the years we evolved into a well-known, respected home builder with award-winning homes in KY and IN. We continue growing and honing our craft while always staying true to our core values and principles of service, design, commitment, quality, craftsmanship, and flexibility. Thompson Homes is the builder you can trust to offer consistently exceptional customer service, designs, and homes that go above and beyond to fit how you want to live.
Each home we build is unique because each homeowner is unique and that is why flexibility in home design is essential to how we work. Our team is committed to building a home that reflects each owner’s personality. Our homes are unmatched when it comes to craftsmanship and design but what truly sets us apart are the products and materials we use behind the walls to make sure each home is operating at peak efficiency.
Regardless of price point or location, it is our passion to be good stewards of your money while offering you the best options available when it comes to performance, health, and flexibility.
We take the time to meet with you and understand your lifestyle. We discuss “the nuts and bolts” of your home, looking at what you need, how much space you desire, and what look and feel would best compliment your style. Our experienced designers make it a priority to stay current on the latest trends and styles in architectural design and custom features. Browse our inspiration gallery, become inspired by our floor plans, drive through our communities, and imagine your life in a Thompson Home.
Contact Thompson Homes Today!
When it comes to building and financing your “move up” home, the more prepared you are, the faster and easier it will be. Start getting your home ready to sell, gather your records, brush up on the different financing options, and find the right lender for your situation. Contact us to learn more about our new homes for sale in Owensboro, KY and financing options.
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