Should you sell your Bay Area Home before you buy a home? | Weekly Bay Area Real Estate Tip #17
Every Tuesday, I go into detail a question I frequently get asked. Question of the week! Should you sell your Bay Area home before you buy your next home?
With work from home being extended by a lot of companies, there is a fundamental need for more space than ever before. A lot of families are dual income so at the very least most families need at least 1-2 bedrooms! This is in addition to the growing need as families expand or as in laws move back into a home.
So what are your options and what can you do? It depends on your goals. If you are OK with being a landlord and you have the capital for the downpayment and loan for another home, a lot of my clients elect to just buy a second home and rent out their existing primary. It’s always important to weigh this option with a trusted lender before you go down the path.
If you don’t want to be a landlord or need the downpayment for the next home, you do have the option to sell your home and ask for a 30 to 60 day rent back. Rent back allows the current home to stay in the home after the property closes to the new owner so it may minimize the amount of moves you need. Once the property closes, you also have the capital to be able to make strong offers on the next home. If someone gives you a really good offer, you may also just stay in an airbnb or hotel while you search for your next home as the rent back offering is only available if you and the buyer come to an agreement.
There is one last option but it’s much rarer and requires a lot of equity in the primary home. There are loan programs available that can take the money from your primary, give you a large loan for the next home with the expectation that you plan to sell the first home. A lot of banks have gotten tighter here, but it’s still something that people leverage. If you have any questions, or would like to discuss your thoughts about the real estate market, let’s talk!
If you are tired of renting in the Bay Area, are a home owner looking to do a trade up for a bigger home, or are wanting to sell your home for top dollar, I would love to connect!
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Born and raised in the Bay Area, I spent 11 years as an Enterprise Sales Manager before becoming the Tech Realtor of the Bay Area. Having the background as a homeowner, investor, and renovator, I leverage data and insights to help my clients gain a competitive advantage with their real estate journey. Communication and knowledge is key so as long as I'm awake, you will get a reply from me! I have helped 31 families YTD for over $40MM in delighted transactions and I look forward to help you too.