Selling or buying a home is stressful.  Combining the two can be a tricky endeavour.  Steps need to be taken to ensure this process is carried out smoothly, and matches your needs while taking into consideration the current housing market environment.  In a Seller's market, sellers have more control over their options of making this transition more smoothly.  Let's take a look at some ways of handling selling and buying a replacement home:

1) Selling a home with no contingencies:  

This option means accepting a buyer's offer, and then being under immense pressure to find a "perfect" replacement home assuming the sale of your home is scheduled to close escrow in only 30-40 days.  If you find your dream replacement home, but during the escrow period it ends up cancelling for some reason (this happens frequently), then you are stuck in a real time crunch.  A solution in this scenario to give yourself more time is to make sure the sale of your home is a longer escrow period (3-4 months). You can then have more time to carry out inspections and negotiate on your replacement home. In addition, you will still have time to find another home if the first one falls out of escrow.

2) Selling a home contingent on finding a replacement home:

This is a way to take the pressure off.  Make sure the sale of your home stipulates it is based on your ability find a replacement home and obtain a fully executed contract.  If you do not find a suitable replacement home, then you are not obligated to sell yours.  In a Seller's Market, you are much more likely to have a Buyer accept this type of arrangement.

3)  Selling and 'leasing back' your home:

This alternative also works well in a Seller's Market.  You simply agree to a Buyer's offer contingent on a leaseback.  This may work well for a Buyer who loves your home, yet is not ready to move right away.  It also gives them an opportunity to earn some rental income prior to taking occupancy.  It gives you, the seller, peace of mind knowing you can focus solely on purchasing without immense pressure.

4) Selling, then renting prior to purchasing a replacement home:

Sell your home, then go rent for 3-12 months.  The advantage with this method is when renting, you can learn about a particular neighborhood you love, and "try it out" for awhile.   This gives plenty of time to explore areas and homes leading to a prudent decision. There are always nuances and unexpected aspects of living somewhere new.  Having time to sort through both good and bad realities of living somewhere new can help ensure a good decision.

If you have questions about what route to take when selling your home and buying a new one, contact me for a complimentary consultation.  I can be reached at 480-825-2870.