Work relocations can be both exciting and nerve-wracking. One of the biggest concerns many homeowners face when considering a work-related move is the timing of selling their existing home. You might be worried about not finding a new home in time or not getting the financial equity you need from your current home, especially when dealing with the seasonal fluctuations in the real estate market.
Today, we have a valuable question from Rob, who is in a similar situation — looking for advice about the timing of a home move.
He is concerned about the timing of selling his home and using the equity for his upcoming move.
"Lisa, we're looking at a possible work relocation in the coming months. We need the equity from our existing home for the new home purchase, but we know things are slower this time of year. That has us nervous about two things... (1) Not finding another home in time for our move, and (2) not selling our existing home in time to get the equity out in time or not getting what we need financially out of the home because it's going to snow soon. What are your thoughts?"
Keep reading to discover the insightful advice Lisa Ash provided about how to address Rob's concerns and make the process smoother using any one or combination of several proven strategies Lisa has worked with other homeowners to utilize in similar situations successfully.
Bridge Loans or Home Equity Line of Credit (HELOC):
If you have a good amount of equity in your existing home, you can consider a Bridge Loan or a Home Equity Line of Credit (HELOC). These loans allow you to use the equity in your current home as a down payment on your new home.
This option allows you to put your home on the market and begin your search for a new home without contingencies related to selling your existing property.
A skilled Realtor can provide insight into the estimated time it might take to sell your current home. Coordinating the closing date on your purchase with the expected closing date of your sale can alleviate timing concerns.
NAF Cash Program by New American Funding:
The NAF Cash program offers a unique solution. It allows you to purchase your new home as a cash buyer. Once the purchase closes, you can move into your new property immediately.
This approach provides the flexibility to prepare your existing home for sale without the stress of living there during the process.
You can typically put down around 3% on your new purchase, and the proceeds from your sale are later used as a lump sum down payment on your new home.
If you're uncomfortable with the previous options, you might consider renting in your new location temporarily. This gives you the opportunity to become familiar with the area before making a long-term commitment.
You can choose to list and sell your current home before moving or move into a rental and then put your home on the market. This approach minimizes the risk of having two mortgage payments but comes with a rental payment instead.
Hire an Experienced REALTOR®:
In today's real estate market with high-interest rates and seasonal fluctuations, hiring an experienced REALTOR® is more important than ever.
A REALTOR® can guide you through the process, help set realistic expectations, and employ effective strategies to get your home sold even during slower times of the year.
Relocating for work can be a stressful process, but with the right guidance and strategies, you can navigate it successfully.
Lisa Ash's expert advice provides various solutions to address concerns related to timing the sale of your home. Whether you opt for Bridge Loans, the NAF Cash program, or temporary renting, working with a knowledgeable REALTOR® is key to ensuring a smooth transition.
If you have more questions or need personalized guidance for your unique situation, reach out to Lisa Ash to request a complimentary Discovery Call so you can learn more about your options — for your specific situation.