Question “We live in Clairemont and we’re ready for a bigger house, but I don’t know how to go about this. I don’t want to sell mine until I’ve got another one, but I have to sell to get the money to buy the next one. How do people do this?”
Answer:
I hear San Diego home owners ask this question all the time. I see you with 5 options:
1. Buy non-contingent
2. Buy contingent, then sell
3. Sell contingent, then buy
4. Sell non-contingent with rentback, then buy
5. Sell non-contingent, move out, then buy
OPTION #1: Buy Non-Contingent
Buy a San Diego home, then sell yours. You can do this if:
A. You already have down payment money for a new home
B. You can find the money, possibly as a gift from family
C. You borrow against your home for the down payment
OPTION #2: Buy Contingent, Then Sell (*Worst Option*)
Do the fun part first. Househunt and find a home, offer contingent on your home selling, get it accepted, then sell your San Diego home. Downside: Sellers hate contingent offers! So you pay a premium to get a seller interested, then you rush to sell your home, probably for less money.
OPTION #3: Sell Contingent, Then Buy
“Scout” the San Diego housing market. Like what you see? Then list your home contingent on buying a home. Once you have a buyer, find the home you want and offer contingent on your home sale closing. Then close both transactions.
OPTION #4: Sell Non-contingent With Rentback, Then Buy
Sell your home with a rentback period, then buy contingent on your closing. The rentback gives you some time to close on your new home. But you may have to move out & rent if it takes too long complete a purchase.
OPTION #5: Sell Non-contingent, Move Out, Then Buy
Don’t mind a double move? Sell your San Diego home non-contingent, then buy. If you’re lucky, once your home is in escrow you’ll find a home and close both at the same time and avoid a double-move.
All these options have risks if not handled 100% correctly. A family I know did #3, but their agent messed things up. They were forced to sell and move out even without having a San Diego home to move to. They ended up renting for 7 years! Also, the standard contracts contain dangerous language for Options #2 & #3.
If you’d like to sit down and discuss your needs, determine your best option, and how to make it happen, call me at (858)457-KENT.
San Diego short sale expert Gary Kent has written the book on short sales. Gary would like to offer the San Diego Short Sale Guide to you for free – Short Sale Guide.
To find out how much your San Diego home is worth compared to owe much you owe, go to www.ShortOrStaySanDiego.com
The Gary Kent Team 858-457-5368 of Keller Williams is a California Real Estate Broker, License 00862878. We are not licensed to provide legal or tax advice and we encourage our clients to seek legal and/or tax advice early in the short sale process.
by Gary Kent. Gary has successfully helped well over 200 clients and their families sell their homes or other real estate via a short sale. In 1991, he closed his first short sale for a young family, and since has been helping clients get out of stressful financial situations, escape from “under water” mortgages, avoid foreclosure (and the accompanying stigma), save their credit, and maintain their pride through a short sale. You can find Gary on Facebook, Twitter and Google+.
