Navigating Dual Homeownership: Practical Solutions for Selling Your Current Property
Navigating Dual Homeownership: Practical Solutions for Selling Your Current Property
Congratulations! You’re under contract for a new home, but there’s one challenge: your current home hasn’t sold yet, and closing day is approaching quickly. If you’re juggling two properties, here are actionable strategies to help you manage this transition smoothly.
1. Explore Bridge Loan Opportunities
Contact your mortgage lender to determine if your current home’s equity qualifies you for a bridge loan. This short-term financing option helps cover the gap between buying your new home and selling the old one. While interest rates for bridge loans are typically higher than market averages, they can provide temporary relief if you expect to repay the loan quickly with proceeds from your home sale. Keep in mind that not all lenders offer bridge loans, and eligibility requirements may apply.
2. Rent Out Your Current Home
Consider renting your property to generate income while waiting to sell. If the rental income exceeds your monthly mortgage payment, this strategy could turn a profit. Even if it only partially covers your expenses, it reduces the financial burden of maintaining two homes. Renting also buys you time to wait for a stronger real estate market before relisting.
3. Revisit Your Sale Price
If your home isn’t attracting buyers, your real estate agent may recommend lowering the price. While this might feel like settling for less, holding out for a higher offer could cost more in the long run if you’re stuck paying two mortgages indefinitely. Analyze the math: a slightly lower sale price may outweigh months of dual payments.
4. Negotiate a Contingency Offer
If you’re eyeing a resale home but haven’t made an offer, ask the seller about a contingency agreement. This arrangement grants you exclusive rights to the property for a set period, allowing you time to sell your current home before finalizing the purchase. Note that in competitive seller’s markets, buyers may be less willing to accept contingency terms due to higher demand.
By evaluating these options, you can reduce stress and financial strain during your move. Always consult with real estate and financial professionals to tailor the best approach for your situation.
