How to sell house you live in?

How do people sell the house they live in and move to a new house, when the only way they can pay for the new house is with the proceeds from the sale of the current house?

It seems like a chicken-and-egg problem.

If you shop for a new house first, then put your current house on the market when you find a new house, you could lose the new house if the current house cannot be sold in time.

If you put your current house on the market before you find a new house, you might have to close the deal on the current house and move out before you have a chance to find a new house.

Ordinarily, I would say that the latter scenario is workable. "Simply" find an apartment or house to rent month-to-month in the interim.

However, month-to-month rentals are hard to find, and breaking a lease is risky (added cost). More to the point, the house owner has serious medical problems that makes moving very difficult; read: once is tolerable, twice in a short time is painful. And it is unclear that her needs can be met when living in a small apartment -- especially if there are stairs; read: it might be difficult to find the "right" apartment in short order.

I'm sure many people face this problem. How is solved, typically?

Reply to
nomail1983
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Search the internet for "real estate bridge loan". Some links advise that if you have enough equity to qualify for the bride loan, you might also just get a home equity loan.

Or, if the buyer is flexible and you provide enough incentive, you might arrange to live in the old home on a rental basis for a few months after it is sold.

-Mark Bole

Reply to
Mark Bole

Since I've done this twice now...

Put your house up for sale and start looking for a new house. Line up several new house candidates on a priority basis, keep looking while your current house is on the market.

When a contract is signed on your house, then you make an offer on whatever house is on the top of your "to buy" list. Arrange both closings to be on the same day, then pack up.

Reply to
Daniel T.

This is the great conundrum of house moving!

Daniel's idea is great when it works.

Since it is a buyer's market, selling your house as the first step makes excellent sense. Get an accepted offer on the house you are selling. You could even make your offer on the new house contingent on an accepted offer on the house you are selling. You "double close" (have your real estate agent explain this term) and move the money from the house you are selling directly to the house you are buying. I was involved in this once as a buyer. (Trying to make your accpetance of an offer on the house you are selling contingent on buying a house, although technically possible, is unlikely to work in a buyer's market.) You still owe taxes on profits (I'm sure you are aware of the owner occuppied for 2 out of the last 5 years exemption) so make sure you allow for that, if necessary. There is always risk that this could blow up in your face, or lose you a buy (or sell) that you would otherwise have had.

Good Luck!

Reply to
camgere

Contingency contract is about the only reasonable way, given your other stipulations. If you can't get a particular house (some people reject such offers) or the contingency expires, then that's part of the process. You'd better be flexible in selecting houses.

Brian

Reply to
Default User

Offer to buy the new house on a contingent basis, contingent on you selling the old house. This works in a real estate down market. Or, work with a real estate agent.

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Reply to
PeterL

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