Selling your home when you are planning to move to a different state can be challenging. Putting your house for sale can be a stressful experience in itself, with the hunt for an agent and the task of gaining curb appeal. Combine all of this with the relocation to another state, and you have a big job on your hands! One of the risks of this scenario is that if your timing is not right, you may buy another home in the state you are moving to before you sell your current house. This would force you find temporary lodging somewhere else for a while!
In order to avoid the above situation, you need to properly plan for both events as best as you can. Of course, the best scenario is when you can afford both homes, even temporarily. But some don’t have it so lucky, so you must do some advanced planning in both buying and selling. Here are some tips to help you sell your home when you’re moving to a different state:
- Decide where you’ll move to. You should not sell your current home before you sign a new mortgage, so make sure you know exactly what state you want to move to. Be familiar with the market in the new state you are moving to. While you might have to pay on both houses for a little while, you’ll have more peace of mind if you know that you won’t be without lodging for a while.
- Rent your home back. This common strategy involves the seller selling the home and renting it from the new buyer temporarily. Both parties can agree to a time period that the seller can rent until they close on another home or their new home is completed.
- Consider a bridge loan. Also called a swing loan, a bridge loan is a riskier strategy. You can use your existing home as collateral and take out a loan for the down payment of your new house.
- Rent in your new state. This is a good option if you need time to look around for a new house. You can put your belongings in storage and take your time finding the perfect neighborhood. This takes the pressure off a bit.
Some attentive planning in advance will allow you to sell your old home while you move to a different state, and you will be able to do both simultaneously and smoothly. Then, you can focus on settling into your new home and life.
Knowing the true value of your new home and the house you are selling can really help you in figuring out your budget! You can obtain a free home valuation report from Neighborhood IQ to find out how much a property is worth. Also, the Home Loan Advisor can analyze your property, current market conditions, local market comps, and other variables in our proprietary algorithm, and match you with potential lenders.