When selling your Albuquerque home and buying another, the timing of these transactions may not sync up perfectly. You may not want the hassle of coordinating both deals at once. Or external factors may prevent lining them up. So you could end up with a sold home before securing your next purchase.
Below, we’ve outlined the options available to help you navigate that period between selling your current home and moving into your new one. One of the most important things you can do is work with a knowledgeable real estate agent who understands your goals and priorities, such as Sandi Pressley and her team.
Wondering what your options are in the gap between selling and buying? Here’s what you should know.
Temporary Housing
To bridge the gap easily, you could arrange temporary housing by renting an apartment, staying with family or friends, or using short-term rental services. Though this provides flexibility to take your time finding the ideal new home, it may require moving twice and extra costs.
You will likely need to find a storage unit for your belongings during this time, as most temporary housing will be furnished and not have space to accommodate your stuff.
Rent-Back Agreement (aka Post-Closing Occupancy Agreement)
Rather than immediately vacating your home after a sale, negotiating a rent-back agreement with the buyer can facilitate a smoother transition. This arrangement enables you to remain in the property for an agreed-upon period, paying rent to the new owners. While contingent on the buyer agreeing and mutually acceptable terms, a rent-back agreement allows more time to find and finalize a purchase of your next home.
A rent-back agreement that benefits both parties requires relying on your real estate agent’s expertise. They may find a solution allowing you to move just once and avoid temporary storage, which works for both of you.
Contingent Offers
When house hunting, making a contingent offer is one option to consider. A contingent offer means purchasing your new home depends on first selling your current property. While less appealing to sellers, it’s a practical approach if your home is already listed and drawing genuine buyer interest.
Despite the current financial conditions, your offer may still be attractive enough for buyers to accept it if you have the right strategy, a strong offer letter, and an otherwise solid financial position.
Bridge Loans
Bridge loans provide short-term financing to cover the gap between selling an existing home and buying a new one. Secured by the equity in your current property, these loans offer funds for a down payment before you’ve sold your old house. But higher interest rates and fees mean bridge loans require careful financial planning.
Extended Closing Periods
When selling your current home in Albuquerque, you may be able to negotiate an extended closing period, which gives you more time to find and close on a new property. Though requiring agreement from both parties, this option can be a feasible solution, especially in competitive markets where buyers may accommodate your timeline.
Some buyers may find an extended closing period more appealing, as it allows them extra time to adapt to their situation. Consider promoting your willingness to offer a lengthened closing process, since this could help you locate the buyer who best suits your needs.
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Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.
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