Premier Sothebys Intl Realty
Kelly Lee McFrederick, Premier Sothebys Intl RealtyPhone: (727) 410-3605
Email: [email protected]

Selling This Home, Buying That One: Tips for Handling Financial Overlaps

by Kelly Lee McFrederick 03/16/2020

Post

Image by StartupStockPhotos from Pixabay

Unless you're a first-time home shopper, you'll need to acquire your next home while selling your current home. How do buyers finesse this?

When buyers are competing with each other for a tight inventory of available homes, the ones who are ready to come to the table fastest, not the ones with contingencies, are most likely to succeed.

So, what's an ordinary buyer to do? Here are the top solutions—not all for the faint of heart!

  • The collaboration: Ask the buyer of your current home to go ahead to closing, but let you rent it for a month or two past then. If the buyer really wants your place and is in the position to do it, your problem is solved. Obviously, this arrangement isn't for all buyers. But every situation is unique, and this might work for yours.
  • The photo finish: Plan to schedule simultaneous closings on both homes, if a motivated, approved buyer can agree to wait for you to complete your purchase. It's been done. There is some risk here, not to mention moving van challenges! If your buyer has to pull out for any reason, you may still have to close on your new home. 
  • The bridge loan solution: With a bridge loan, you can purchase a home before selling, borrowing against your current home equity until you have the sale proceeds in hand. These are meant to be short loans. A bridge loan will get pricey if your home takes longer than expected to close. Steer clear of depending on this kind of loan for more that the span of a few weeks.
  • The contingent offer: You can line up a new home without having to take on the new mortgage until you're done with your sale. Yet few sellers are happy to accept contingent offers and hold on until a buyer's home sells. Contingent offer agreements usually only stay open for about 60 days and often have clauses that can accelerate the buyer's need to commit, allowing the seller to accept another offer. 
  • The sell-and-hotel method: This is a good way to reduce risks. Sell your home, take stock of your bank account, and know exactly what you can comfortably purchase. Store any furnishings you plan to take with you, and get a short-term rental for yourself. This means moving twice, but it also means you have money from the sale, and you're not buried under two mortgages.

Selling one home to buy the next makes the already complex matter of home buying...more so. But an experienced real estate agent can lead along the best path for your circumstances and put you in touch with financial professionals where needed. 

About the Author
Author

Kelly Lee McFrederick

Kelly Lee McFrederick, a native of Clearwater Beach, Florida and graduate from the University of Florida, is well regarded and respected as a proven real estate associate for over 15 years, broker associate, real estate instructor and Certified International Property Specialist and now Instructor status. She thrives in the international marketplace and is a member of the Tampa Bay Chapter of the Asian Real Estate Association of America. Kelly Lee continues her passion in real estate with certifications in Resort and Second-Home Property Specialist and memberships in the International Consortium of Real Estate Associations. She travels to approximately four countries a year building relationships and sharing listings and information on Florida. In 2017, Kelly Lee traveled with the Asian Real Estate Association throughout Southeast Asia and spoke about Florida real estate in Singapore and in 2018 traveled with Pinellas International Council to Dominican Republic on another real estate trade mission.

Her most valuable attribute is her client commitment. She believes in representing every client with the utmost in professionalism and proficiency. Kelly Lee brings a wealth of experience and current knowledge to all her customers and is dedicated to helping them achieve their goals, being their strongest ally and proven negotiator. As an experienced luxury home, condominium and town home specialist, with proven experience in development, she is currently listing and marketing luxury town homes in 747North, a new downtown development in St. Petersburg. With continual sales in multi-family and commercial, Kelly is aggressive in marketing all properties. Utilizing professional 3D photography,staging, wordsmith copy-writing and all marketing tools through Premier Sotheby’s International Realty, she takes full advantage of her associations with the top brokerage and social media to promote and reach all buyers.

Kelly Lee has lived and enjoys vivaciously the Florida Gulf Coast lifestyle, from growing up on Clearwater Beach to residing in urban downtown St. Petersburg, she shares it all on her “You Tube” channel.  An avid tennis player, golfer and a lifetime spent boating up and down the Florida coast, she understands the Florida legacy. Kelly Lee is also a generous contributor and member of the St. Pete Chamber of Commerce, a dedicated alumna of the 2014 Leadership St. Pete class, social member of the Vinoy Renaissance Hotel, St. Petersburg Yacht Club, and membership chair of Infinity Charity donating time and money to those in need. She is involved with committees that encourage the growth of the community and is a notable board member of the Arts Alliance of St. Petersburg. Preparing to buy or sell your home or property, Kelly Lee McFrederick, as an Accredited Home Staging Professional Master, and past trainer for StagedHomes.com, is passionate and knowledgeable on the Gulf Coast of Florida and is the choice when looking for a real estate professional serving the Gulf Coast.