For many homeowners, buying a new home before selling their current one can be a daunting task. However, with the right strategy, it is possible to achieve this goal without breaking the bank. Vickey Barron, a veteran real estate broker at Compass in New York, advises her clients to list their current home as soon as possible to avoid delays in the buying process.

Understanding the Market

According to Michael Perna, a real estate agent in Novi, Michigan, the current market is moving quickly, with 32% of properties receiving multiple offers. This means that homes are selling fast, and buyers need to be prepared to act quickly. The National Association of Realtors reports that the median time for a home to sit on the market is 28 days, which is a significant decrease from the 10 weeks it took to find a home in the past.

To navigate this market, it’s essential to have a clear strategy. This includes listing your current home as soon as possible and working with a knowledgeable real estate agent who can guide you through the process. A good agent can communicate with all parties involved to ensure a smooth transaction.

Financing Options

One option for financing a new home before selling your current one is a bridge loan. These loans are designed to bridge the financial gap between buying a new home and selling your current one. They typically have terms of up to 12 months and no prepayment penalties. However, they often come with higher interest rates and closing costs.

Another option is a home equity line of credit (HELOC). This can be used to finance a new home, but it’s essential to open the line of credit early and wait until you’re ready to buy to make a withdrawal. It’s also crucial to choose a lender that offers an introductory rate below the prime rate.

Original reporting: KTBS 3 (Shreveport) — read the source article.