Issue link: https://nest.uberflip.com/i/1234437
market, you'll likely have an offer accepted quickly, even a contingency offer, and can then turn around and quickly sell the home you're moving from. You'll want to start working weeks or even months before listing your home to get all of your ducks in a row to minimize the amount of time you're holding two mortgages. A home prep usually takes two to three weeks, sell it within two weeks and have a 21-30 day escrow. So, all in all, the time carrying two mortgages can be as short as two months. To be on the safe side you should budget for three months of two mortgages. Those who can't stomach the chance of carrying two mortgages at the same time may consider a contingency offer. In this scenario, making an offer contingent on the sale of the home in the hot seller's market wouldn't be unusual and would be the saf- est way for a buyer to make the move with- out any risk of having to carry both homes' mortgages for any length of time. However, if you are also purchasing in a seller's mar- ket a contingency offer will likely put you at the bottom on the pile. A contingency offer as a buyer is saddling the seller with a certain amount of risk that other offers coming in might not have. Remember: You're not the only party in this equation. For every seller there's a buyer, for every buyer a seller. While things might ap- pear to be working smoothly when viewing your master plan from above, that doesn't take into account the varying fortunes of the people you will be working with. Closings are rife with delays. Your buyers might have difficulty securing their mort- gage; your home inspector may bring up issues that need to be fixed before you can move in. You're relying on the seller of the place that you're buying to be ready to move, in concert with the buyer of your house. Making the Timing Work Step 1: Work on improvements to the home you're living in, so it's ready to sell quickly when the time comes. Step 2: Make an offer on a house in your new city. If you choose to make a contin- gency offer, ask for at least 60 days of con- tingency period. Step 3: Once you close on a house in your new city and move out of your current home, put that house on the market. Step 4: In the unlikely event you can't find a buyer quickly, consider a HELOC to maintain expenses until you can sell or a bridge loan which allows you to own two homes simultaneously if you don't have deep pockets for a second down payment. This option is especially attractive if you'd planned to sell your home first and use the proceeds to buy the second. It functions as a short-term loan, intended to be repaid upon the sale of your original house.