SELLING & BUYING A HOME
STRATEGIES
FOR SELLING YOUR CURRENT HOME & BUYING A REPLACEMENT HOME
Now that you’ve decided to buy a new home, it’s important to consider how best to orchestrate the processing of selling and buying. Understanding your choices is essential to crafting a wellstructured plan that aligns with your timeline, budget, and risk tolerance.
We outline the five proven strategies for selling and buying, with each approach having its own advantages and considerations. Armed with this clarity, we can execute a gameplan that helps you achieve your highest priorities.
STRATEGY
1
SELL WITH CONTINGENCY; BUY WITH COORDINATED CLOSINGS:
In this approach, you list your current home and accept a buyer’s offer that includes a contingency for your time and flexibility to find a suitable replacement property. After you’ve secured the new home under contract, both sales are scheduled to close in quick succession. This coordination helps you move directly from your current home into the new one without needing temporary housing or juggling multiple moves.
STRATEGY
2
BUY WITH CONTINGENCY; SELL WITH COORDINATED CLOSINGS:
In this approach, you first find the home you want and secure it under contract, contingent on selling your existing home. You then secure a buyer for your home, and schedule both closings consecutively. This way, you move directly into your new home without needing interim housing.
PROS:
• Convenience: You avoid the hassle and cost of moving twice by transitioning directly from your current home into your new one.
CONS:
• Limited Timeframe: If you can’t secure a suitable replacement property in time, you could lose the buyer on your current home and have to start the selling process over.
• Potential Compromise: The looming deadline might pressure you into settling for a “good enough” replacement instead of your ideal home.
• Reduced Negotiating Power: Because you’re on the clock to find a new place, you may have to concede more during negotiations both with the buyer on your property and seller on the replacement property.
PROS:
• Convenience: By coordinating both closings, you only move once and save on additional moving costs.
CONS:
• Limited Inventory Options: Sellers may avoid offers contingent on a property that hasn’t yet sold, shrinking the pool of homes you can pursue.
• Pricing Pressure: Because your purchase depends on selling your home quickly, you may have to price your house more aggressively.
• Tighter Negotiating Window: Deadlines loom over both transactions, giving you less leverage when negotiating terms for either property.
STRATEGY
SELL WITHOUT CONTINGENCY; BUY WITHOUT NEEDING COORDINATED CLOSINGS:
You list your home for sale, and you simply sell to the best available buyer. Once you’ve secured a buyer, you look for your new home. If you can’t align the purchase before selling, you move into temporary housing until the right home surfaces.
PROS:
• Less Pressure on Selling: You can maximize value through stronger negotiation without the urgency of needing to close quickly.
• More Time for a Proper Fit: You can be patient with finding and negotiating on your new home.
CONS:
• Possible Double Move: If your new home isn’t ready before closing on your current one, you’ll need temporary housing.
STRATEGY STRATEGY
PROS:
BUY WITHOUT CONTINGENCY; SELL WITHOUT NEEDING COORDINATED CLOSINGS:
You purchase your new home first without contingency (various financing considerations to explore), then you sell your current home without having to coordinate exact closing dates.
4 5 3
BUY WITHOUT CONTINGENCY; KEEP CURRENT HOME AS AN INVESTMENT/RENTAL PROPERTY:
Keep your current home as a rental property and long-term investment, free to purchase your new home unincumbered by the need to coordinate closings or pressured by any particular timeline.
• No Double Move: You can smoothly transition once you own the new home.
• Negotiating Advantage: You have more freedom to find the right fit and negotiate most favorable terms.
• Great in a Seller’s Market: Lock in today’s purchase price, then sell your current home later—possibly at a higher price if the market continues to rise.
CONS:
• Carrying Costs: You might pay two mortgages until your current home sells.
• Uncertain Proceeds: You won’t know exactly how much you’ll net from the sale of your current home until it closes.
• Pricing Pressure: To avoid lengthy double payments, you might need to price your current home more aggressively or be more flexible in negotiations.
PROS:
• Long-Term Wealth Building: Holding onto an appreciating asset will increase net worth while providing rental income and substantial tax benefits, both short term and long term.
• Maximize negotiation and convenience: All decisions are 100% on your timeline allowing you to find the best home with the best terms.
• Convenience: Move only once.
CONS:
• Being a landlord isn’t for everyone: You’ll be responsible for ongoing maintenance, tenant screening, and potential evictions, or delegating management to a third party.
Now that you understand these five strategies, we can work together to determine which approach best aligns with your goals—whether that means maximizing sale proceeds, minimizing logistical hurdles, or balancing both.
By focusing on your long-term goals, unique timeline, budget, and risk tolerance, we’ll create a customized plan that ensures a confident path forward and a successful move into your next home.
