Selling your current home while waiting for a pre-construction closing
Many move-up buyers own a home while their new one is being built. The challenge is the closing date, which can move.
Wait for the firm date
Do not sell, or give notice on a lease, until the builder sets a firm closing date under the Statement of Critical Dates. Tentative dates can move several times.
Options when the dates do not line up
- Flexible closing: ask buyers for a longer or flexible closing on your sale.
- Rent-back: sell and rent your home back from the buyer for a short period.
- Bridge financing: a short-term loan to cover the gap when you close on the new home before your sale closes.
- Short-term rental: sell first and rent while you wait.
Money to plan for
- The deposit on the new home comes from savings, not your sale proceeds.
- Two sets of closing costs: selling (commission, legal) and buying (adjustments, land transfer tax).
- Carrying costs if you own both for a while.
Talk to your lender early
Ask about porting your mortgage, prepayment penalties and bridge financing before you list.
Dinesh coordinates both sides. Book a call
What does this mean for you?
Book a free 15-minute call and Dinesh will walk you through how it affects your plans.
