If you’re selling your current home and buying a new one, navigating the process can feel overwhelming—especially when your funds are tied up in your existing home. That’s where contingencies come in! At Liberty Star Mortgage, we’re here to help you understand how contingencies and leasebacks can simplify your real estate transaction.

What is a Contingency?

A contingency is a common strategy that helps you buy a new home while selling your current one. If most of your funds are tied up in your current home, a contingency ensures your offer on the next house is subject to the sale of the home you’re living in.

Here’s how it works:

• You put your current home on the market and get a contract to sell it.
• At the same time, you make an offer on your next home with a contingency clause.
• Both homes can close on the same day. For example, you could close on the home you’re selling in the morning and the new one in the afternoon. The title companies will handle transferring the funds from one to the other seamlessly.

The Leaseback Option

There’s another option that may provide more flexibility: a leaseback. Here’s how it works: You close on the sale of your current home, but you lease it back from the new owners for a short period. This can give you extra time to prepare for your move. For example, you might close on your sale on a Friday, lease your home over the weekend, and move into your new home on Monday after completing the purchase.

A leaseback provides:

• More time to pack and clean
• A smoother transition without the rush of same-day closings
• Peace of mind knowing your funds are ready for your new purchase

Ready to Make Your Move?

If you’re planning to sell and buy at the same time, a contingency or leaseback could make the process easier and more efficient. Have questions about how these options work or want to explore the best strategy for your move? Contact Collette Horton at Liberty Star Mortgage, she is here to guide you through it!