Want to Buy but Have to Sell First?
 
There are four basic options: 

1)Buy a home contingent on the sale of your home
2)Buy a home contingent on the sale of your home but with a kick-out clause 
3)Sell your home first and then buy your next home. 
4)Buy a home without any contingency and hope you can sell your home before you close on your new home.  

Each has it's advantages and disadvantages.  If you're married you really have to come to terms with what stress levels each partner can handle. 

1. Risk Free but Usually Unworkable
Find a home you love, negotiate a contract that is contingent on the sale of your home and then put your home on the market.
Advantages
No risk.  If your home doesn't sell you don't have to buy the new home. 
Disadvantages
Very few sellers are willing to accept a contingency contract.  Would you take your home off the market with everything hinging on whether or not the buyer's home will sell?  Sometimes a seller will accept such a contingency if the buyer offers a significant non-refundable deposit.  This then puts the risk back on your side. You can spend a lot of time finding just the right home and then writing contingent offers. But you'll usually come up empty.

2. Risk Free But Frustrating 
You find your dream home and then negotiate a contingent contract that has a kick-out clause.  You then run home and put your home on the market and hope you get a contract before being kicked out of your other contract.

Advantages
No risk.  If your home doesn't sell you don't have to buy the new home.  Sellers are more likely to accept the contract. They can continue to market their home hoping for a non-contingent offer to come along.   But they do run the risk of the home not being shown as much because other buyers don't want to waste time going after a home that is "under contract".  A good listing agent usually will  insist on keeping their listing in the multiple listing computer as "active" to avoid a decrease in showings.

Disadvantages
If it's a nice home at a good price, most likely someone will come along with an offer that doesn't have a contingency.  The seller will then kick you out of your contract and you'll be back to square one.  All the effort will be for naught.  Your dream home bubble will be burst.  The kids will be all upset.  You can spend a lot of time and energy doing this.

3. Conservative But Realistic Approach. 
First put your home on the market. When you get a contract, try to negotiate the closing date as far into the future as possible to allow you time to find your next home. 

Advantages:
You know that your house is sold.  You won't be owning two homes.  You'll know exactly how much money you'll have available for your next home. 

Disadvantages:
You take the chance that you won't find a suitable home to move into before the closing date.
You might have to move to temporary housing with all the inherent hassles. To some, the thought of possibly having to move twice is incomprehensible.  If your dream home criteria is very unique, it might take a while for a suitable home to go on the market.  Or to avoid a double move, you'll compromise on important criteria and end up with a home that really doesn't make you happy.

Strategy to make it happen
You really need to know what kind of home you want to move to.  Be realistic about your financial capacity to buy your dream home.  Be conservative with the amount of money you'll realize from the sale of your home after all expenses are accounted for.  If you're too optimistic you might be thinking you'll be able to move into a pricier neighborhood than you really can afford.  Along the same lines, be conservative about what interest rates might be when you're ready to buy.  Will a jump in rates wreck you plans?  You need to be very familiar with the particular neighborhoods with homes that will meet your criteria.  How often do suitable homes come onto the market?  At any given time are there several homes available that you would feel comfortable with buying?  If not, you need to be prepared to move to temporary housing while you wait for your dream home to go on the market.  Are you prepared to do this?  Would a lot of your stuff have to be put into storage?  Will your family be able to handle the instability and dynamic situation?  These are all things that need to be considered.  It's a lot to think about but is very necessary.  Once you put your home on the market you begin to get a lot of people involved with your life.  Be sure you have your ducks in a row.

4. Most Risky Approach
Find a home you love, negotiate a contract with no contingency on selling your home. Then put your home on the market trying to sell it before closing on your new home.  Usually this approach requires some sort of bridge loan if your home doesn't sell before closing on your new home.

Advantages
You can wait until you find your perfect dream home to start the ball rolling. You're guaranteed a single move.   You're in a very strong negotiating position.  Sellers love non-contingent offers as long as they know you are financially capable.

Disadvantages
You might be the proud owner of two homes.  The market can turn quickly sometimes. You might have to drop your price more than you anticipated.  Can you handle this financially?  Every month that goes by will be another mortgage payment. You'll be more and more reluctant to lower the price.  The longer your home is on the market the more of a stigma it will get.  

Strategy to make it happen  
You need to really have a good idea of what it will take to sell your home.  Is it a unique home that will take just the right buyer?  What price will sell it in the necessary time frame?  Don't look at what other homes are listed for.  Look at what other homes have actually sold for. Market knowledge is key. Can you get a bridge loan on your home?  How long can you carry both mortgages?  

Bottom line

You really need to come in and talk it over with us.  Tell us what your wants and desires are  and what you wish to accomplish.  We'll listen closely and give you some suggestions.  We'll tell you what to look out for and what to expect. If you're ready and willing, we'll create a plan and get to work helping you make your dreams come true. Call us now to set up a free one hour consultation.  404-845-0265