Options For When You Can’t Find A Home (Before Selling Your Property)

If you sell your home before buying your next one, don’t worry – there are multiple solutions available. While it would be ideal to coordinate the sale of your old home with the purchase of your new one, this easier transition isn’t always possible. But your RE/MAX Alliance agent can help you navigate the temporary solution that best fits your case. Here are some of the best options:

1. Friends or Family
For a short delay in finding your new home, staying with family or friends might be a good solution – both economically and logistically. The downsides are: storage costs, double-moving expenses, and it may not fit for larger families or those with young children.

2. Housesitting Arrangements
A housesitting arrangement is a superb option if you are well-organized: there are multiple online platforms that pair homeowners who are taking long trips with housesitters who will watch their pets, take care of their plants, and such. This option takes time and can be highly competitive (depending on your limits in location and time). The big upside is that it’s often free or even paid, making it a smart way to compensate for storage costs! This, however, might not be an option for people with their own pets (though some homeowners may not mind). 

Read: What We Want You to Know before Buying or Selling a Home (Part One)
 
3. Short-Term Rentals
A simple and flexible solution is to rent a home on a month-to-month lease. Financially, this could be a win or a loss, depending on the size of your next mortgage payment. Whilst having to move your furniture twice is an obvious downside (unless you find a furnished place). This option could reduce the pressure of rushing your decision on purchasing a home, so you can take time to search, avoid buyer’s remorse, and have more negotiating power with the sellers.  

4. The Leaseback Agreement (Best Option for Most Sellers)
A great win-win solution that can benefit both the seller and the purchaser is a Leaseback Agreement, in which after you’ve sold your home and closed the deal, you become the buyer’s temporary tenant. 

The advantages are evident for both parties!

For the seller:

• Continue househunting in the comfort of your former home.
• Not spending time moving or looking for a temporary place.
• No need for a storage unit.
• And only one move!

For the buyer:

• Seller’s rent can help cover the buyer’s mortgage costs.
• If the buyer has bought a house before selling their old home, the leaseback helps them financially.
• Investors can benefit from a built-in first tenant.

Read: What We Want You to Know before Buying or Selling a Home (Part Two)

For a leaseback to work well for both parties, a detailed agreement is vital. Factors that must be taken into careful consideration are: buyer’s mortgage conditions, financial obligations, clear terms on rent and penalties for overstaying, insurance coverage, utilities, and maintenance.

Your RE/MAX Alliance agent can help draft a mutually satisfying and protective leaseback agreement that can reduce the stress of the process of selling and buying for everyone. 
 

Source: HGTV.com