Trading up without two mortgages
Sell your home and buy the next one in the right order, without getting stuck with two mortgages.
The fear is two mortgages
When someone is selling their home to buy a bigger one, the fear I hear every time is the same: getting stuck with two mortgages. Sell first and you might have nowhere to go. Buy first and you might be paying for two houses. It's a reasonable thing to be scared of.
The answer is a plan with steps in the right order and protection written into both contracts. When you can see the steps laid out, most of the panic goes away. Here's how I do it.
Step one: list your home first
My first suggestion is always to get your current home on the market before you start looking. It feels backward, but it works in your favor. A listing agent is much more likely to accept an offer that depends on selling your home when your home is already on the market.
So the first goal is getting your house listed, and you can see how I do that in how I sell a home. Then we start looking for the next one.
Step two: protect yourself on both sides
Here's what eases the panic. Say we get an offer on your home before we've found your next one. My counteroffer makes that sale contingent on you finding and closing on a new home. You're not forced out with nowhere to go.
Then, when we find the house you want, we put it under contract contingent on selling your current home. Now you're protected all the way around. You won't close on the new house unless the old one sells, and you won't have to hand over the old one until you have somewhere to go. That's how you avoid two mortgages.
When the dominoes line up
Sometimes the buyers of your home are selling a home too, and their buyers may be selling one as well. I call it the domino effect, and it takes an agent who can keep a level head and keep every party talking to hold the deal together.
I had a seller who was selling his home and buying another. The buyers for his home were selling a house in California, and that sale hit a problem, so we needed an extension. When I asked the listing agent on the home my client was buying for that extension, they wanted a non-refundable deposit before they'd sign.
I told them no. It was out of my client's control, and there were four different parties in the chain. If that was their position, we'd withdraw from the contract and find another house. The listing agent came back with, "Oh no, it's fine. We'll work it out." Knowing when someone is trying to strong-arm your client, and being willing to call it, is part of the job.
If you're thinking about trading up in Clarksville, start with trading up in Clarksville and what your home is worth. Newer homes with more room include Hickory Wild and Wofford Estates. Tell me about your move, and we'll lay out your steps.
Frequently Asked Questions
Should I sell my house before I buy another one?
I suggest listing your current home first. Listing agents are more likely to accept a contingent offer when your home is already on the market. Then we look for the next one.
How do I avoid paying two mortgages?
Protect both sides. The sale of your home is contingent on you finding and closing on a new one, and the purchase is contingent on selling your current home.
What happens if my buyer's own sale gets delayed?
We ask for an extension and work it through with every party. I won't let a client put down a non-refundable deposit for a delay that's out of their control.
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