Agent

Best way to buy home before current one sells

Interest-only loan option works well in seller's market

Most home buyers are resistant to selling their current home before they already have another one tied up. This means buying before selling, which carries an element of risk. One way to approach such a move, if market conditions permit, is to make an offer on the new home that is contingent upon the sale of your current home. This way, you don't put cash down on the new place until you have your equity out of the home you're selling. Although you avoid the risk of owning two homes, you also may have to offer an over-market price to entice the seller into accepting your less-than-certain offer. There is also the risk of losing the house to another buyer who can close without having his or her home sold. Usually sellers who accept a contingent sale offer want a release clause in the contract. A release clause allows the seller to continue marketing the property until the contingent-sale buyers remove their sale contingency. If the seller accepts another offer in backup p...