You may be looking to upgrade from your current home in terms of location, type of home, and space. The ideal situation for homeowners who wish to acquire new property would be to sell their current home than pay for the new home with the money you get from the sale. However, the real estate market does not always align the right start for sellers hence you need to find a working solution for buying a home before selling the one you have.

Buy on contingency

You may find your ideal home in the highlands Seattle before you sell your current one and you wish to hold it. You may propose to buy the new house on contingency. This means that you make an offer to the seller and stipulate that you will only close on the new home when yours sells. Contingency is quite a tricky proposal to sellers since there is a risk that the offer may be revoked if the buyer’s house does not sell within the stipulated time.

However, it is achievable. This plan often works in a hot market where homes are selling within 60 days. The plan may also work if you make a lucrative offer that is equal to or higher than the asking price, especially if the seller is getting several offers.

Rent your home back

The ideal situation of selling your home first before buying another one may work if you propose to the buyer that you wish to rent the home for a specified amount of time. As such, you get money from the sale and you get enough time to close the deal on the new home. You may offer to conduct some renovations while renting back your home from the new owner as an incentive. This idea eliminates the extra costs of moving into a temporary rental before finally moving into the newly purchased home.

Take a bridge loan

A bridge loan entails taking a loan on the current home that you own and are planning to sell. Your home acts as collateral for the bridge loan, which when given, pays the down payment for the new home that you wish to buy. The down payment you put on the new home grants you immediate ownership of the property. As such, you can now move into the new home and sell the old one.

The money you receive from the old home will pay off the remaining mortgage on the old property and the bridge loan that you took to cover the down payment of the new home.

A bridge loan requires an appraisal of your current home in order to identify the possible loan amount that you may get. Lenders tend to give 85{fd391cb7062e41bc902112b5b1fb371750b02c8bd296baecdaaa7e022e76832e} of the home value excluding the remaining mortgage amount. The lender will conduct a thorough check of your incomes, expenses, and credit score to determine whether you can afford this financing option.

With the right knowledge, it is possible to buy your mid century modern Seattle home before selling your old home and without stretching yourself too thin.