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  • Writer's pictureMegan Kilmer

3 Ways to Make a Move and Buy a Home Before You Sell!

Howdy, homeowners! Are you ready to make a move? Feeling stuck with a house full of equity but low on cash? Well, guess what? You can purchase a new home even before you've sold your current one! I know it sounds too good to be true, but fear not. Today, we're diving into three fabulous strategies that will help you navigate this situation with ease and confidence. So get ready for a stress-free real estate experience. Let's go!



In California, where home sales tend to complete within 60 days in 2023, let's discuss your property and sales timeline to help weigh your options.


Option 1 - Bridge Loan: Bridge to Close Picture yourself building a bridge between your current home and your dream home—introducing the bridge loan! This is a great solution for those with HUGH equity in their existing home (or other properties). Here's the lowdown:


Pros:

  • Speedy home purchase: With a bridge loan, you can secure financing for your new home pronto, ensuring you don't miss out on your dream abode in a competitive market. We're talking about getting you from contract to close in about 11 days!

  • No more contingencies: Say goodbye to contingencies! With a bridge loan, you can make a non-contingent offer, making you the superstar in the eyes of sellers. It's almost like making a cash offer, leveraging the equity you already have.

  • Only move once AND have time to fix up your old home before selling to get top dollar!

Cons:

  • Bridge loans may have higher rates during the time of the bridge, plus loan origination fees (around 2% of the loan amount). The trade-off is often worth it, especially if you have found your dream home before listing your current one. PLUS - with the possibility of a quick close and no contingencies you will have a stronger bargaining position to potentially purchase at a lower price than competing buyers with standard contingencies.

Option 2 - Leverage an "Purchase Guarentee" on Your Property: Unlocking New Doors with a "Trade-up Mortgage." Did you know that you can obtain a purchase guarantee offer on your property to move into a new home? Well now you can thanks to companies like Calque. This is a great solution for those with some but not super high equity in their existing property. Ready to unlock a world of possibilities? Let's explore:


Pros:

  • Be the offer champion: With a contract to sell your existing home in hand, you can confidently make offers on new homes without worrying about selling your current property first. That means no contingency for the sale of your property! This gives you a significant edge over those dealing with lengthy loan periods. As a diligent buyer, you can potentially close in just 15-21 days!

  • Lightening the financial load: you can use the expected proceeds from your sale to obtain a new loan, making your journey to a new home much more manageable. This option is especially helpful if you're having a hard time saving for another down payment and don't want to move twice.

Cons:

  • Timing is everything: Keep in mind that there's always a small chance the sale of your current property may hit a roadblock. However, when you work with a trusted professional who brings you a bonafide contract, you're setting yourself up for success and have a purchase price guarantee.

  • You will still likely need a loan contingency to obtain financing for your purchase. Luckily, with your home already in contract, you won't need your existing house to close escrow before closing on your new one.

Option 3 - Submitting a Contingent Offer: A Safety Net with Negotiating Pizzazz. Let's add a pinch of caution with a contingent offer—your very own safety net with a twist. Here's the traditional way to buy a home before you sell:

Pros:

  • Peace of mind: A contingent offer provides a safety net, ensuring you won't end up owning two properties simultaneously. So go ahead and sleep soundly.

  • Lowest cost option compared to #1 and #2 above.

Cons:

  • Non-contingent envy: Most sellers prefer non-contingent offers so it may be harder to get your offer accepted in a competitive environment.

Now that you've discovered three creative ways to buy a home before you sell, it's time to dive deeper into your unique circumstances. Reach out today, and together, we can uncover the perfect path for your journey. As always, I strive to bring you a stress-free real estate experience! Click now to discuss which thrilling option is right for you!


Happy house hunting, fellow homeowners!


Megan Kilmer

Realtor DRE 02095012

Loan Officer NMLS 2436714

Cell 831.888.7530







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