Most people need to sell their current home before they buy their new one. However, if you sell your home before buying the next one, you’ll be crunched for time, and you might not select the new home that’s perfect for you. Conversely, if you wait and buy the new home before you sell, then you might need to pay two mortgages at the same time until the first home sells.
How can you avoid these challenges? Be sure to get a sense of what’s going on in the housing market before you make a move. Look the market where your home is, and where you want to buy. Is it a buyer’s market or a seller’s market?
If it’s a buyer’s market, then home values have declined and you can find a bargain. You can choose from a lot of different houses at a good price, but your own home may be difficult to sell. Solve this issue by creating a buyer’s contract that is contingent on the sale of your home. When someone signs the contract to buy your home, the contract will not engage until you have a contract to sell your current home.
If it’s a seller’s market, you’ll have an easier time selling your home. In this case, you can make a contingent contract that relies on you securing a new home to purchase. Once you sign the deal to purchase your new home, the sale of your home will also be engaged.
No matter what kind of situation you’re in, homeowners looking to buy or sell can benefit greatly by discussing their situation with an experienced Minnesota real estate lawyer. A real estate lawyer can help protect you from common home buying and home selling pitfalls.
Source: FindLaw, “Buying and Selling a House at the Same Time,” accessed Feb. 24, 2017