Looking to sell a home which I own outright. Also looking to purchase a home which I would use the cash from the original sale to fund a purchase. My question is without having closings back to back, since I would have nowhere to go upon the sale closing how do I get into a new home immediately without any Gap. My last home I sold I had a closing for sale, and a closing for a purchase in the same day it ended up being a nightmare. It basically gave me one day to move and put all my stuff in storage which is not what I want to do.
Asked by Anonymous | Wonder Lake, IL| 07-28-2021| 1,253 views|Tips & Advice|Updated 3 years ago
The cleanest way to avoid a gap is to negotiate a post-closing occupancy agreement, also called a rent-back, on the home you're selling. You close the sale, the buyer takes ownership, and you stay in the home as a tenant for an agreed-upon period while you close on your new purchase. This gives you time to move without rushing and without needing storage.
Since you're paying cash for the next home using proceeds from the sale, timing is critical. The ideal sequence is to list your current home, go under contract with a buyer, then make an offer on the new home with a closing date that falls a few days after your sale closes. Your attorney or title company can coordinate both closings to happen back to back with a small buffer.
Another option is to close on your sale with a rent-back of 7 to 14 days, use that time to close on the new home, and then move directly. This avoids the single-day nightmare you experienced before and gives you a realistic window to transition.
If back-to-back closings aren't possible, a short-term rental, staying with family, or an extended-stay hotel for a week or two bridges the gap. It's not ideal, but it's better than trying to cram two closings and a full move into one day.
Talk to your agent about structuring the timeline before you list. Planning the logistics upfront prevents the chaos you went through last time.
Plan your closing dates carefully and communicate with your lender and agents. Some people negotiate temporary occupancy, do a lease-back, or stay with family or in short-term rentals if needed. Good planning keeps things smooth but know that you can do what we call a simultaneous closing where everything happens on the same day.
Hi Tony, In most markets of the country this is a "Sellers Market". The strongest sellers market I have ever experienced during my lifetime (I'm on the backside of 58). Have your agent negotiate a lease back after close of escrow. This will allow you to stay in your home after closing and make the transition to your new home very easy. Negotiate it up front before accepting a contract. Once the contract is accepted, the Buyer is in control of the transaction.
Hi Tony, It sounds like you had a bad experience, but it doesn't have to happen again. When done right, closing on your current home in the morning and then closing on your new home in the afternoon has worked well very often. Your belongings are on a truck for just 1 or 2 nights. Except for purchasing a new home before selling your current home, there are no other options. Find a very experienced realtor who can sell your home and coordinate with the agent for the house you are buying. Best of Luck. Lillian
Ask for a post occupancy of 30 days or whatever days you want. Also, there are programs where you can buy a home before you sell the other one. Homeward.com is one such vehicle. May cost you a little to do it, but could be well worth it. So a couple of ideas!
Hi Tony, I am very local to you; McHenry, IL. I would like to share with you and show you how we make for a smooth transaction. Please feel free to call/text me: 815-355-2331