How To Buy And Sell A Home At The Same Time

Is it hard to buy and sell a house at the same time? Selling a home and simultaneously purchasing another property can be challenging. In this video Jodi discusses contract contingencies and leaseback options.

Many sellers worry that if they sell their home without finding a new home right away, they might end up putting belongings into storage and renting. Or worse, they may find themselves without a home for a period of time. All of this can be emotional for sellers. But it's not uncommon to see a seller ask a buyer for the right to find a replacement property before fully committing to the purchase agreement. This can be done by adding a replacement contingency or a leaseback clause to the purchase contract.

Replacement Contingency:

- Sellers who are concerned about finding a new home can make the sale contingent on their ability to get a new home under contract.

- A replacement contingency clause should set a specific point at which the accepted offer becomes official and the clock starts ticking toward closing.

- The contingency can be set up to allow the seller to cancel the sale or extend the closing date due to delays in their new home purchase.

Leaseback Option:

It is the process of renting back, for a certain time period, a piece of property after selling it. This effectively makes the seller a tenant and the buyer the landlord.

- A leaseback assures the seller of money in the bank and the funds to make an eventual move while giving him the wiggle room to not rush to a relocation.

- The seller avoids the cost of moving his things into storage to move into a temporary home.

- It affords the seller time for a home clean up for the new occupant, as well as, time to renovate the home he is about to move into.

With planning, the right financing and strategic pricing and negotiating, you can time the sale and the new purchase in a way that works for you.

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