Whether you are moving from your first Southern Maryland home to your forever home or choosing to downsize, you’ll want to consider these three options and which one may work best for you.
Option 1 – Buying While Selling (Contingent)
A contingent purchase means that you will be going under contract on your new home, while attempting to sell your current home. In this situation, you would be asking the seller of your new home to wait until your current home sells in order to complete the purchase on their home. This is called a contingent offer.
The Pros:
- You won’t be paying two mortgage payments.
- Both settlements can generally be scheduled for the same day so that you move straight from one house to the next.
Cons:
- Many sellers are unwilling to accept a contingent offer because they have no guarantee that your home will sell. While there is an out clause that puts a limit on the amount of time you have to sell, they still have to wait for that period to end in order to put their home back on the market. They could lose out on other potential buyers during this waiting period.
- In most cases, you’ll need to be completely moved out of your current home prior to settlement. You also won’t be able to move into your new home until after that settlement. This means you’ll need to be fully loaded into a moving truck for the big day.
- You will still be living in your new home while trying to sell. You’ll have to clean regularly and be ready to vacate on short notice. This includes all people and pets!
Option 2 – Sell Then Buy
If you have a good option for interim housing, this may be a good route to explore. When you sell your home prior to buying a new home, you are free to explore your buying options without the burden of having to sell your current home.
Pros:
- When your home is already sold, you don’t have the stress of needing to sell it holding you back while exploring your buying options.
- You don’t have to attempt a contingent offer that a homeowner may or may not entertain.
Cons:
- You will need to have a place to live during the time between selling your previous home and purchasing your new home. This could mean staying with family or renting a home or apartment.
- Move your personal belongings twice
- Have a place to store your things either at your rental home or in storage.
Option 3 – Buy then Sell
This third option may be the least stressful of all because you can move into your new home while having your old home clean and ready to show at anytime.
Pros:
- Move into your new home without waiting for your old home to sell.
- You won’t miss out on the perfect place just because a homeowner won’t accept a contingent offer or because you haven’t sold your current home.
- Thoroughly clean your old home and have it show ready at all times without having to clean daily and clear out for each showing.
Cons:
- You may have one or more months of overlapping payments while owning both homes.
While each of these options has their pros and cons, there is generally one that fits best with your current situation and moving goals. Your finances, loan choices, and interim housing options may quickly eliminate one or more right away. Determining the best route to take is a crucial first step to planning out your next move.
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