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The Art of Selling and Buying at the Same Time

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The Art of Selling and Buying at the Same Time

Kenny Truong

I love helping clients get through the home buying and selling experience with minimal stress and great results...

I love helping clients get through the home buying and selling experience with minimal stress and great results...

Jun 15 4 minutes read

The Art of Selling and Buying at the Same Time

Have you ever wondered if it was possible to sell your current home and move into a new one simultaneously? Well, it takes skill and finesse, but my team helps clients do precisely this all the time.

A lot of our clients that are selling and buying at the same time have been doing something called a “rent-back”. A rent-back is where you sell your property but remain living in it, paying the rent to the new owners, while you are in the process of buying a new home. The terms are usually pre-negotiated, and around 60 days is most common, essentially it is a very short-term lease.  A lot of times, the Buyers will even offer the Seller a free rent back for a month or two to make their offer more enticing. The Seller’s agent will typically disclose that they would need a rent-back in the confidential remarks in the MLS so that the Buyers are prepared for this scenario.

Another option is doing a short-term rental somewhere. A few companies are offering this in San Francisco, but the leases can be pretty expensive. Extended 1-2 months AirBNBs could also work. I've had some clients do 3-6 month lease from Craigslist too while they look for a new home or go through the process of relocating out of the area. Searching online for "short-term rentals" will help to get a better idea of the pricing and availability.  

In the meantime, you'll likely downsize to something smaller in the interim. You can store all your larger furniture pieces in a POD-- for around a few hundred dollars a month. They hold everything in storage in a local warehouse and can deliver to your new address.

One possibility that helps some of our Sellers is called a Bridge Loan. Bridge Loan’s aren’t for everyone, the interest can add up quickly and be too high. To take advantage of a bridge loan you pull equity out of your current home to buy your next one, and you also have to pay for all the loan origination fees. Keep in mind not all lenders will offer this mortgage product and be sure to do your research about the costs you will be responsible for.

This final option will probably save Seller’s the most money and headache. This option is one of the hardest to execute. We can market the property off of the MLS to procure a Buyer willing to pay a price that is agreed upon. We can have this able and willing buyer wait for you to find the home you want to buy and get into contract, before you sell your home to them. The timing will need to be really smooth for this to happen. They can also get into contract with you first and do longer contingencies and close of escrow time frame.

It hard to shop for a home and make offers that are contingent upon the sale of your home, but if you have a buyer in contract with you that has removed their contingencies, you can shop with 99% (not 100%) confidence knowing that you are ready to buy the next one. The missing 1% is based on if the current Buyer changes their mind and backs out of contract after their contingencies are removed. If that happened, there is a possibility of keeping the Buyers deposit.

There are a myriad of options for Seller’s that need to find a new home before they can sell their current home, I’m here to walk you through that process step by step.  

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