If you need to sell your home to have the cash to buy your next house, it is always better financially to list your house first and have it solidly under contract before writing a contract for your next home.
If a seller were to accept a contingency for the sale of a home, he would ask for a much higher price than you could negotiate down to if you were non-contingent, as he is taking his home off the market for a period of time with the risk of your home not selling and his home having to go back on the market again. You end up paying too much to buy and having to sell your current home quickly at a fire sale price so you don’t lose the new home purchase – the opposite of the ideal scenario of buying low and selling high.
If the home of your dreams receives several offers – a current trend - a non-contingent offer is preferable and you have much more negotiating leverage walking in with the least amount of contingencies possible. A concurrent settlement of your home solidly under contract is much easier for the seller to accept than if your home isn’t even on the market yet.
Don’t worry, when you list your home, we can add a "seller to find housing of choice" clause to protect you in the event nothing is suitable to buy once you have sold. We don’t like homeless sellers!
What if you find the home of your dreams and only want to sell if you can buy "that" house, so you don't want to lose it? The best way to buy without having to sell first if you don't have readily available cash is to secure a bridge loan against the equity in your home or get a new mortgage if you qualify to carry both loans.
If you want to discuss your loan options, or to be approved for a new mortgage or refinance, please call my favorite lender, Eric Mullis at InterCoastal Mortgage - 703-856-4019. I have been working with him for over 10 years now, and he is the best in the business!
