Trading One Home For Another?

Question

Hey there! Title might be weird but here's my question. I have decided I am ready to "buy" another home. I'm tired of living in a neighborhood and want to move into the country. My current home is paid off (valued at roughly $400,000). If I were to find another place for what I can get for this one or close to it, what's the easiest way to "trade"? Basically taking the sale of this house and putting it into the new place so it breaks even so I continue to not have a mortgage, if that makes since. I can only think of two ways. Find somewhere to live while I sell my home and buy a new one to move into, or, buy the new home and have a mortgage until this one sells. I'm guessing these are the only two options, but just wanted to ask to make sure I'm not missing something obvious. I would hate to get into a lease somewhere in the meantime or go through the mortgage process again (other two times were a nightmare) if I don't have to.

Jaron Walling · Answer

Unless you have the down payment (probably 20%) and lender qualifications or the ability to make CASH offers, any offer you make will be contingent on selling your current residence. You're not going to trade and you're not going lease anything. Until the property sells you can't close on the new one. The seller usually has the right to cancel contract with you if a better offer shows up. They can also set a date at which the contract is void if you can't sell your property. A contingent offer can discourage potential buyers.

Given these higher interest rates I'd be prepared to sacrifice something (acreage, sqft., condition, location).

Justin Waters · Answer

Thank you for the reply! I do have the ability to do a 20% down payment. Even more if they required for whatever reason. So, it sounds like the "easiest" way is to get a mortgage for the new home, move into it, sell my current home, then take that money to pay off the new mortgage. I know it probably sounds like a common sense to some people, but I just wanted to make sure I wasn't missing another solution. :)