How to buy your next house when you need to sell your current house first.
Many buyers have plenty of equity to purchase their next home. The problem occurs when that equity is trapped in the form of appreciation of their current house. When that happens, a potential home buyer must also become a home seller to get the cash out of their existing home. One way I’ve help many buyers get around this problem is call the “Buy First and Sell Fast” strategy. The flow chart below gives you the highlights of the steps to take if you happen to find yourself in this situation. Word of caution, the “Buy First Sell Fast” strategy is most effective when the home you are selling is in a strong sellers’ market as you are relying on your existing home to sell fast due to the lack of inventory. If the home you need to sell is located in a soft market see the other strategy called “Sell First with Four Months to Buy”.