We just had our best quarter almost ever, 129 buyers and sellers under contract. Here's how many of them handled buying and selling at the same time.

 

If you're thinking about buying your next home but you still own your current one, the biggest question is usually: how do I do both at the same time without ending up with two mortgages or nowhere to go?

It's a real concern, and it's one we hear all the time. This past quarter was one of the best we've had, almost ever. We helped 129 buyers and sellers go under contract, and the reality is that most of the sellers we work with also need to buy, many of them right here in Southeast Florida. So figuring out the timing of buying and selling at the same time is something we deal with constantly. We've used almost every one of these strategies this past quarter alone.

Here are five options that are working right now.

1. The contingency sale. This is the most straightforward approach. You make your offer on the next home contingent on the sale of your current home. That way, you're not committed to buying until your home sells.

The challenge is that in a competitive situation where multiple buyers want the same home, a contingent offer can be harder for a seller to accept. The further along you are on your current sale, under contract, past contingencies, the stronger your contingent offer looks to the next seller. If you're already deep into the process, that gives us real leverage.

 

"We helped 129 buyers and sellers go under contract this past quarter, and almost all of them needed a strategy to buy and sell at the same time."

 

2. The lease-back. This is one we've had a lot of success with recently. The idea is simple: you sell your home, but instead of moving out immediately, you lease it back from the buyer for a period of time. That gives you breathing room to find and close on your next home without being rushed.

Not every buyer will agree to it, but we've been able to negotiate this on several of our listings lately. It depends on the situation, but it's a strong option when it works.

3. Bridge loans. A bridge loan is a short-term loan that bridges the gap between your current home's equity and the purchase of your next home. It allows you to move forward on a purchase before your current home sells.

There are challenges with the approval process, and it's not the most common route, but it's a real option and one we've used with clients in the past. It gives you the ability to make a stronger offer when timing is tight.

4. Tapping into existing wealth. If you have equity or assets available, there are several ways to use them. A HELOC lets you borrow against the equity in your current home to fund the down payment on the next one. Some clients borrow from their 401k to cover transition costs. And for clients with a higher net worth, borrowing against brokerage accounts and investment portfolios is another path we've seen work well.

The common thread is using wealth you already have to bridge the gap while your current home is being sold.

5. Buy-before-you-sell programs. There are now programs designed specifically to let you buy your next home before selling your current one. There are stipulations depending on your home, location, and price point, and it's an approval process, but the option exists and it's worth exploring if the other strategies don't fit your situation.

Every situation is different, and the right strategy depends on your finances, your timeline, and what's happening in the local market. The best first step is to sit down and walk through the options together.

If you'd like to learn more, we'd be happy to give you a free consultation and help you figure out which approach makes the most sense for your move. Call us at (561) 220-2052, email us at info@tricoliteam.com, or visit tricoliteam.com to get started.