Three Ways to Buy if You Currently Own a Home

Option 1: Contingent on Your Home Selling (“Buy High/Sell Low”)

Positives:

Buyer feels that the perfect home is found without the risk of losing the current home.

Negatives:

Sellers do not generally favor contingent offers as it tends to tie up their home. This requires the buyer to offer at or very close to full price.

Knowing that you must sell your home if you are going to obtain your dream home, this places pressure on you to accept a less than ideal offer to facilitate the move.

A contingent offer can be “bumped off” if a non-contingent offer comes in. Thus, the buyer’s dream home is lost.

Option 2: Non-Contingent with your Home already Sold (“Sell High/Buy Low”)

Positives: This option reduces pressure on you, as a seller, and helps obtain top dollar

for your home. Buying a home without being contingent on your home selling is quite

helpful in obtaining your new home for the lowest possible price.

Negatives: You may feel pressured after your home is sold to find a home too quickly.

Thus, you may either have to move twice (rental) or settle for something less than you wanted.

Option 3: Non-Contingent without your Home Sold and use of a Home Equity Loan

Positives:

Same as Option 2 Ability to take your time to find the right home without the time pressure This is common for those people who will only move if they find the perfect

home.

Negatives: Potential of having multiple payments: current house payment, new house

payment, and home equity payment. Stressful if house hasn’t sold by the time you need to close on the new home.