How to Move Up to Your Next Home with Ease – Week 4

My 5-part series is a comprehensive guide designed to help move-up buyers transition to their next home with minimal stress. Whether this is your first time moving up or you have experience, this series will help you navigate the process with confidence.

This article is specifically for move-up buyers who need to sell their current home before purchasing their next one. If your lender has only approved you for this route, these strategies will ensure a smooth transition. If you haven’t read last week’s article, The Big Move-Up Buyer Question: How Do You Buy and Sell at the Same Time? (LINK), check that out first to determine your best approach. Next week, we will cover buying first.

Step 1: Prepare for Your Move-Up

At this stage, you should have a clear understanding of your home criteria, budget, and target neighborhood. Being fully prepared ensures a smoother transaction whether selling or buying first. If you haven’t yet, read the earlier articles in our series: Should You Move or Stay? and What Move-up Buyers Need to First Ask Themselves (LINK).

Step 2: Sale of Home Contingency – Know When to Use It

A “sale of home contingency” means your purchase offer is dependent on selling your current home first. While this might seem ideal, it is often not a favorable option in competitive markets. Sellers are more likely to accept offers without contingencies, making it harder to secure a home this way.

However, if you’re in a buyer’s market where homes take longer to sell, a sale of home contingency could be a viable option. In that case, ensure your home is market-ready so you can list it immediately upon finding a new home.

Step 3: An Alternative Plan – How to Sell First, Then Buy Successfully

Rather than relying on a sale of home contingency, follow these steps to manage the transition smoothly:

1) Identify Your Future Home – But Don’t Buy Yet

Begin searching for your next home before selling, but hold off on making an offer. The goal is to ensure that your criteria, budget, and timeline align with the available inventory. This step prevents last-minute surprises and allows you to act quickly once your home sells.

2) Timing Your Sale and Purchase

Work with your agent to analyze recent home sales in your desired neighborhood. Understanding the pace of the market will help you time your sale to align with available homes.

For example, selling during the holiday season may lead to fewer buyers, whereas spring and summer tend to have higher activity. Discuss with your agent the best time to sell and buy based on market trends in both your current and future neighborhood.

3) Sell Your Current Home First

Once you’re confident in your future home options, shift focus to selling your current property. Ensure it is well-staged, priced correctly, and marketed effectively.

Remember, the goal is to move into a better home, so make strategic decisions that position you well for your next purchase without appearing desperate.

Step 4: Managing the Gap Between Selling and Buying

Once you’ve successfully sold your home, you need a strategy for securing your new one. Here are two key options:

1) Rent-Back Agreement

Negotiate with your buyers to rent back your home for a short period (typically 30-60 days). This allows you to close on your sale, access your funds, and secure financing for your next home without needing a contingency. Many buyers are open to this if they are flexible with their move-in timeline.

2) Temporary Housing

If a rent-back isn’t possible, consider short-term housing while you search for your new home. This could mean staying with family, renting a short-term unit, or using storage for your belongings. While not ideal, this option prevents rushed decisions and allows you to wait for the right property.

Final Thoughts

Selling first, then buying, requires careful planning but can be executed smoothly with the right approach. The key is preparation, understanding your market, and having a flexible strategy in place.

If you’re considering making a move, reach out to me James.Daniel@kw.com to develop a tailored plan based on your ideal timeline. The best time to start planning is months—even a year—before you want to move, so let’s start now!

Stay tuned for next week’s article, where we’ll cover strategies for buying first before selling, for those who have lender approval to do so.