4 Non-Traditional Ways That You Can Sell Your Home
Selling a home first and then buying a new one isn't your only option.
By Laura Wehnes
As I have been meeting with people over the last few years, the biggest concerns that people have about selling their homes has changed from being the price that they will receive and the inspection contingencies, to being afraid of selling with no place to go, to not wanting to fix it up because they need a quick sale. Many people believe that the only way they can move is the traditional way of selling their home first, then moving to the next home. However, there are more options than this traditional route. In this article, I will talk about the alternative ways you can sell your home so you can find a home that best fits your new housing needs.
Option 1: Purchase a home, then sell your home
If you have the financial capabilities, you can get a home under contract and purchase it prior to selling your home. This is a great option if you have equity in your home and can get a down payment without selling, or if you are considering keeping your current home as a rental property.
The downfall of this option is that you won’t know what your final home sale price is before you purchase your new property. Therefore, this is not a great option if you are tight on cash or need to know very specifically how much money you will get out of your home.
Option 2: Delayed mortgage
This option is great if you have equity in your home and can qualify for two mortgages but want to use the cash from selling your house for a down payment. You can borrow from your investments (401K for example) or borrow against them to buy the house “cash.” Once you close on that house and your new home, you could do a refinance on the new house to pull the cash you borrowed back out of the home to repay your investments. This is called a delayed mortgage. Not all mortgage companies will do this, so if this is an option for you, you will want to contact your mortgage professional to find out if you qualify. We have resources that can help you with that as well.
This is not a good option for you if you do not have investments or equity in your current home. This method takes a higher understanding of finances, so if this is an option for you, consult your financial resources to make sure you are making the right decision for yourself.
Option 3: Sale-and-leaseback
This is an ideal situation if you must sell your home before purchasing a property, whether that is because that is how you are most comfortable financially, or because you don’t have another way of getting a down payment. We can get you a market value offer on your home with the ability to lease your home back until you find a home. The rental amount would also be fair market value. One bonus of these types of sales is that there are no contingencies, except for a short inspection period since the investor will typically give you an offer without seeing your home. You don’t have to go through getting your home ready for sale and you get the flexibility of purchasing a home in your time frame.
While this option is realistically for anyone, you should only take this route if you are 100% certain that you want to move. Once your home is sold, you can still rent, but you can’t change your mind once the property is sold.
Option 4: Use an iBuyer
You may have seen the term “iBuyer” floating around on different websites and social media posts. This is a program where someone will write an offer on your house with an as-is sale, sometimes without even seeing the property itself. This is very helpful if your home needs some work, you don’t have the ability to get your home ready for the market, you want a quick sale, or you are selling a property out of an estate.
This option is not for you if your main goal is to net as much money as possible from selling your home. In the current market, this option also doesn’t make sense if you have a home in good condition, even if it needs some updating. In a strong seller’s market, you can get good terms and prices even if your home isn’t in HGTV viewing status.
If you are thinking of selling your home, consult with your real estate professionals. There are lots of different ways that we can help you get into your new home and help reduce your stress. Our team sells in Missouri and Illinois, and we are happy to help set you up with a trusted professional in any state if you are looking for that as well.
If you are looking to buy, sell or invest in Real Estate or you know someone who is, please reach out to us via email, phone, or text.