What to Do If You Sell Your House Before Finding One to Buy

Are you planning to sell your home? One of the fears that many homeowners face when selling their homes is not being able to find a new house to buy in time. This can happen at any time, but it’s a common problem during a seller’s market when home prices are especially high.

In some cases, not being able to find a home to buy may even stop a sale from occurring at all — but this doesn’t have to be the case. There are options. Let’s take a closer look at what to do if you sell your house before finding one to buy.

Consider a Leaseback Agreement

A sale leaseback is one of the best options for the home seller who hasn’t found a house to buy yet. A leaseback is a contract that allows the owner to sell the house but remain in the home for a period of time. The contract will take you from home ownership to renting. You will pay a pre-fixed monthly rent to the home buyer to stay in the home, which is usually the equivalent of the mortgage payment.

The benefit of a leaseback agreement is it gives you more time to find a home without having to worry about where to go in the meantime.

Opt for a Short-Term Rental

Another option for selling before buying a new home is a short-term rental. You can rent an apartment on a month-to-month basis or sign a lease for a short period of time, such as three to six months. This will buy you extra time to find a house that you’re interested in purchasing.

The main downside to this option is that you’ll have to pay for moving expenses twice. These costs can really add up, especially if you’re going to be moving far away.

Think About House Sitting

House sitting is another option to consider when you’re in between homes. The best part about this is that you’ll be able to get paid to watch someone’s home — and, generally, their pets.

It can take some time to line up house-sitting gigs, so it’s important to plan ahead. You’ll also want to stick with jobs that you feel comfortable with. For example, if you’ve never owned a big dog before, you might want to stay away from assignments that require you to watch one.

The disadvantage here is that it might take multiple gigs before you find a home to buy. In the meantime, you’ll also need to keep your stuff in storage, but the money you make can help cover some — if not all — of that expense.

Stay With Family or Friends

No one wants to spend any period of time crashing on someone’s couch, but staying with family or friends is often the easiest — and cheapest — way to survive this situation.

Unless your loved ones have a living arrangement that would make staying with them comfortable for everyone involved (e.g., a guest house or basement), this is generally only a good solution in short-term scenarios.

If the family or friends you choose to stay with don’t have a lot of room for your things, you’ll probably have to put your things in storage until you find a home to buy.

These are just a few options to take into consideration when you sell your home before buying a new one. Although this can be a scary position to be in, it’s important to know that there are options. Figuring out which solution is the best one for you will help make the whole process go a lot smoother in the long run.