Which approach to coordinating a home sale & purchase is right for you
OPTION 1
FIND YOUR NEXT HOME >> PUT IT INTO ESCROW >> LIST YOUR CURRENT HOME>>
YES: SALE OF HOME CONTINGENCY
YES: HOME OF CHOICE CONTINGENCY
In this scenario, the seller of the home you are buying will give you 17 days to get your current home into escrow. That could be doable, but may require a more tantalizing price to inspire immediate action by buyers.
This scenario is not preferred by the seller of the home you are going to purchase, but if that property has been on the market for a while, he or she may be willing to work with us. In a competitive bidding situation we would be at a large disadvantage.
Having a home of choice contingency may decrease your number of prospective buyers, but not hugely. In this case, you’ve already got your next home under contract when your buyer comes along, so that’s less concerning to them.
OPTION 2
LIST YOUR CURRENT HOME >> RECEIVE AN OFFER >> FIND YOUR NEXT HOME>>
YES: SALE OF HOME CONTINGENCY
YES: HOME OF CHOICE CONTINGENCY
In this scenario, the seller of the home you are buying will give you 17 days to get your current home into escrow. That could be doable, but may require a more tantalizing price to inspire immediate action by buyers.
This scenario is not preferred by the seller of the home you are going to purchase, but if that property has been on the market for a while, he or she may be willing to work with us. In a competitive bidding situation we would be at a large disadvantage.
Having a home of choice contingency may decrease your number of prospective buyers, but not hugely. In this case, you’ve already got your next home under contract when your buyer comes along, so that’s less concerning to them.
OPTION 3
FIND YOUR NEXT HOME >> PUT IT INTO ESCROW >> CLOSE ESCROW >> LIST YOUR CURRENT HOME>>
NO: SALE OF HOME CONTINGENCY
NO: HOME OF CHOICE CONTINGENCY
This scenario requires an alternative financial arrangement. Either an equity line (HELOC), a portfolio advance from your investment manager, a home equity advance through our Aviara Advantage program or cash reserves of your own.. This allows you to purchase your next home independent of the sale of your current home.
This approach is the least stressful, but results in the additional cost of paying for two properties for a short period of time and possibly some fees for setting up the bridge loan.
This is a good approach if you think you may need to do some upgrading to your new home and want to be able to make those improvements while you still live in your current home.
This scenario is even more preferred by the seller of the home you are going to purchase, since it involves no contingency regarding the sale of your current home. It is also preferred by your buyer, because there is no uncertainty regarding you finding your next home.
OPTION 4
LIST YOUR CURRENT HOME >> RECEIVE AN OFFER >> CLOSE ESCROW >> FIND YOUR NEXT HOME >>
NO: SALE OF HOME CONTINGENCY
NO: HOME OF CHOICE CONTINGENCY
This scenario requires that you arrange for alternative housing and storage for your belongings until you find your future home. This can be a good approach if the timing is right for your sale, but you think it may take some time to find just the right home that you’ll want to buy.
When you ultimately do buy, you will have no sale of home contingency, which will make your offer more attractive to a seller. In the sale of your current home, you don’t have a home of choice contingency, which is more attractive to the buyer of your home.
The following links will provide valuable information if you are planning the sale of your home:
- OVERPRICING YOUR HOME – Overpricing your home can deter potential buyers and lead to your property sitting on the market longer than necessary, ultimately impacting its final sale price.
- SELLER’S ESCROW PLANNING TIMELINE – Our Seller’s Escrow Planning Timeline helps you stay organized and on track with key deadlines and tasks throughout the selling process, ensuring a smooth and successful transaction.
- SELLER DO’S AND DONT’S – When selling your home, it’s important to follow these do’s and don’ts to maximize your chances of a successful sale and a smooth transaction.
- MOVING CHECKLIST – Our moving checklist provides a comprehensive guide to help you stay organized and on track during the moving process.
- COORDINATING A SALE & PURCHASE – Coordinating the sale of your current home with the purchase of a new one can be complex. We outline the four primary approaches to handle this situation, ensuring you find the one that’s right for you.