I am selling my home and buying another — How do I make that happen without multiple moves?
This is certainly a challenge – and often referred to as “the domino effect” in a real estate transaction. If you are selling one home and buying another – this is something that must be discussed with your Realtor® in order to have a plan that can work best for you and your family. Until you know who is buying your home and also what home you are buying — this is a situation that you cannot pre-plan for completely. Circumstances can occur from just one slip in the process of buying or selling a home. There are so many people and institutions involved in these processes along the chain that can really throw a wrench into the works. Many times these transactions go smoothly; but it is a contingency that must be considered.
How to Avoid the Domino Effect
1) The first choice would be to have the two transactions close simultaneously. Since you can see that this is not always possible – what are the options?
2) If financially possible, you can buy your new home, move in and then put the current home on the market. Downside – two mortgages/overhead for a period of time.
If you can pull together the financing for this, it’s a good way to alleviate some of the stress of moving and buying/selling. It also alleviates the stress of living in a home that’s on the market. Keeping your home spic and span, attending to pets and needing to leave at a moment’s notice, can also be a tiring part of the process. The problem that arises for many is dual financing. If this is an issue for you, then another way to avoid the domino effect is to go ahead and sell your home, then stay with family or friends, or rent an apartment while you search for a new home. Naturally, this can create a different kind of stress.
3) You can try to negotiate with the buyer of your home to lease the home back from them after the sale. This gives you the proceeds of the sale to go forward with the new purchase and gives you a period of time to close on the new home and move in without an interim living arrangement.
All Real estate transactions have some element of stress, along with the joy of owning a new home. Your Realtor® is there to help you reduce those stresses and guide you through the process. Avoiding the domino effect is just one way you can consider reducing your stress during this time.