What happens if you sell your house before you find your next one? It’s a tough situation that can happen to almost anyone since most people need to sell their current house in order to buy the next one.
In a seller’s market like we’re currently seeing in Nashville, the problem is that if your offer on a home has a sale contingency and you’re competing against three or four other offers, the others might have an advantage.
There are a few ways we help buyers avoid this issue.
The first is to go out and start looking at properties so you can be sure there are a few things out there that you like. That way, you won’t have to hesitate when the time comes to write an offer. From there, my next recommendation is to put your house on the market and try to get a contract. The good thing about a seller’s market is that you as the seller have a little bit more control over the contract. That means you can dictate those terms better.
Since you have extra leverage, I recommend that my clients push closing out 45 or 60 days rather than the usual 30. That’ll give you more time and less stress when finding your next home.
Another option to bridge this gap would be a short-term rental, like Airbnb or VRBO. These are great options if you need to stay somewhere for a month or two while you find your next house, and they’re furnished. This will help you avoid having to move twice.
My least favorite option is to ask the buyer of your home for a temporary occupancy agreement. You would close on the house but then stay in it for a specified amount of time. You’ll want to get renter’s insurance for your belongings since your homeowner’s insurance won’t cover your personal items once you close on the home. It can get messy, but it can work if you truly need that extra time to get into your new place.
Each case is different, so don’t hesitate to give me a call if you have any questions. I’m always happy to help!