# How to Buy a New Home Before Selling Your Current House

It’s a homeowner’s dream to be able to purchase their new home before selling their current property. After all, who wouldn’t jump at the chance to move at your own pace, to vacate the home and avoid the hassle of de-clutting and staging your current home, as well as the inconvenience of having to clean and leave every time there’s a request to show the home?

The problem is, most of homeowners won’t qualify for both loans and will need to tap into the equity in their current home to make this dream a reality.

Can it be done? Absolutely. There are a handful of financing options that can reverse the normal sell-then-buy scenario. But it takes timing, planning and some financial guidance to buck such an ingrained system.

Here are six strategies to help you buy your new home before selling you current house.

## 1. Accurately Price Your Home According to it’s Market Value

The first step is to face up to your home’s current market value. If you think it’s worth more than the market will bear, it could linger on the market when it comes time to sell, putting you in a financial squeeze. It’s important to prepare to sell the house quickly because carrying the cost of two homes — including additional real estate taxes, maintenance and utilities — quickly eats up any potential exaggerated value you think you may have in your property.

## 2. Calculate your Down-Payment Gap

The math is pretty simple. First, estimate the price range that meets your criteria for a new home; for example, \$150,000 to \$200,000. Next, calculate the down payment you’ll need (20% to avoid paying private mortgage insurance, or PMI), in the event you carry a mortgage. In this example with 20% down, the down payment is \$30,000 to \$40,000.Add closing costs to this estimate, as well, or about \$2,500. So, if you have, for example, \$10,000 in the bank, you’ll need to come up with an additional \$22,500 to \$32,500 to buy your new home, including closing costs.If (buyers) have the cash to do it themselves, it’s not a big deal, however, most people aren’t cash-flush enough to be able to pull it off.

## 3. Sell to an iBuyer

An iBuyer is a company that will make you an offer on your home within minutes (or days), sight unseen (based on a proprietary valuation model), with the intent to re-sell the home for a profit after making minor repairs and improvements (iBuyers will not consider homes that require signifcant repairs and or renovations). If you choose to accept the price, you can close in as little as a couple of days.

When would you consider selling your home this way, and who is likely to take advantage of the service? A few examples are (1) if you need to move to relocate for a job, (2) your home needs updates / improvements and/or costly repairs and you don’t have the money, time or desire to deal with renovating the home and effectively preparing it for market, (3) you aren’t interested in dealing with the inconvenience and hassles associated with listing and selling a home, (4) you are a distressed seller, or (5) you’ve found your next home and want/need to act quickly.

In Columbus and Central OH there is a better option to the iBuyer model which discounts your home beyond the cost of repairs and improvements, and tags on a full 6% commission, and that option is our first-of-its-kind Home Trade-In Program! The program was designed to help Central Ohio homeowners looking to avoid the hassle, inconvenience, uncertainty, and many of the costs (including the real estate sale commissions) associated with the traditional sales process.

Here’s how it works… we will send our Trade-In Representative to meet with you at your home to assess its value and prepare an offer that represents what we believe to be your property’s fair market value. You will receive an offer within days, there is no cost or obligation and you can accept or reject our offer.

Once you’ve accepted our offer we will then assist you in finding your replacement home. There are no limitations here and you have the option of considering: pre-owned existing homes, already completed new homes, or even building a brand new fully custom home. As it relates to builders and communities, again there are no restrictions as we work throughout the greater Central Ohio region and with every local builder. Once we’ve found your perfect home and negotiated the sale, we will coordinate back-to-back closings for your sale and purchase preventing you from having to worry about timing your transactions, or a double move and temporary housing!