Where to Live Between Selling and Buying Your Home

written by

Junk Home Buyers

posted on

June 17, 2024

where to live between selling and buying

Table of Contents

Did you know that the median home sale price increased by over 4.86% compared to the previous year, showing a great time for homeowners to sell? When you’re selling a home and looking for a new one, you might face a housing gap. There are a few options to consider during this time, like rent-back agreements, short-term rentals, Airbnb or Vrbo, or staying with family and friends. You could also rent an apartment or a home, or even live in your new house early if the situation allows12.

When deciding where to live between selling and buying, there are several things to think about. These include how much storage you’ll need, your old home’s sale price, and market conditions. You should also consider the available neighborhoods and how long you’ll need temporary housing1. Other factors such as the timing and duration of your stay are important too2. If you choose a short-term rental, it might last 3 to 6 months and cost a bit more in monthly rent or deposit. But they are usually more affordable and bigger than hotels12.

If you want to stay in your old home for a bit after it’s sold, rent-back agreements might be just what you need. This works well if the new buyers aren’t moving in right away – you can stay there for up to 60 days. Airbnb or Vrbo could be cheaper for longer stays or for families. Hotels, on the other hand, are easier to find and offer services like maid and room service12.

Extended-stay hotels are good for short relocations, especially if your new job covers it. They have living space but they might be smaller than renting an apartment. Staying with family or friends can be helpful to save money or find the perfect new home. Renting an apartment, condo, or a house for a short time is also an option. This can be very useful, especially if market conditions change or interest rates go up12. Keep in mind, the longer you stay in temporary housing, the more it might cost, affecting the total moving expenses2.

Key Takeaways

  • Various temporary housing options are available when selling and buying a home, including rent-back agreements, short-term rentals, Airbnb/Vrbo, extended-stay hotels, staying with family or friends, and renting an apartment or home.
  • Factors influencing the decision on temporary housing include storage needs, sale price of the old home, market conditions, neighborhood availability and pricing, and duration of stay.
  • Rent-back agreements allow the seller to stay in their old home after closing for a specified period, typically up to 60 days.
  • Short-term rentals and Airbnb/Vrbo can offer affordable and flexible accommodations, while extended-stay hotels are suitable for relocation, especially if employer-sponsored.
  • Staying with family or friends can help save money, while renting an apartment or home may be necessary when considering market conditions and interest rate changes.

Consider a Rent-Back Agreement

If you’re between homes and need a temporary place, a rent-back agreement can help. This lets you stay in your old home for a set time after selling it3. Such a deal can last from a few days up to 60 days, making your move smoother45.

rent-back agreement

Negotiate Terms with the New Owner

Your agent can work out key points with the buyers. Things like the rent, deposit, how long you stay, utility bills, who fixes things, and what insurance you need5. The rent is often what the buyer needs to cover their mortgage and other housing costs. They might figure it out based on daily rates4.

Outline Monthly Rent, Utilities, and Duration

Make it clear what you pay monthly, for utilities, and how long it lasts. These agreements can be short or go on for weeks or months depending on the deal5. But, remember, going over 30 days might not work with your mortgage terms5.

All the details should be in a written agreement. This could be a usual lease or part of your closing documents4. For short stays, a SIP form might fit better than a full rental agreement5.

You can talk about many parts of the agreement, like how long and how much to pay. Rent-backs are often seen in tough housing markets and must end when agreed. If you stay past the deal’s end, the buyer may need to ask you to leave legally4.

Find a Short-Term Rental

Looking for a place to stay between selling and buying your next home? Short-term rentals and sublets are great options. They last from 3 to 6 months, offering a comfy and flexible home during your move 1.

short-term rental options

Start your hunt for a 3- to 6-month home online or with a local agent. Websites will have many choices, and agents can cater to what you need.

Consider Furnished or Unfurnished Options Based on Your Storage Needs

Think about if you need a furnished or unfurnished place. What’s available might change with the area, time of year, and market1. If you don’t need to move your stuff, a furnished place is better. But, if you’re bringing your own furniture or need to save your items, choose unfurnished.

Negotiate a Month-to-Month Lease for Flexibility

For more freedom, try to get a month-to-month lease. Short-term rentals like this might cost more upfront, but they let you stay longer if you need to without a long contract1. This way, you’re not rushed to move out while you find and buy your new home.

Short-Term Rental OptionIdeal DurationFurnished/UnfurnishedLease Flexibility
Online Rental Listings3-6 monthsBoth availableVaries by listing
Real Estate Agent Recommendations3-6 monthsBoth availableNegotiable
Month-to-Month LeaseFlexibleBoth availableHigh

When picking a temporary home, think about these things: how much space you need, your old home’s selling price, the market, your new area, and how long you’ll stay1.

With these factors in mind, short-term rentals can offer a great, flexible living spot. They ensure you’re comfy during your move.

Rent with Airbnb or Vrbo

Finding yourself without a home for a bit, Airbnb and Vrbo can help a lot. They give you lots of options for short stays. This is great for quick plans or when you need more time to figure things out.

Ideal for Short-Term or Last-Minute Stays

Looking at places on Airbnb or Vrbo means you get to choose from many. You might save money by picking a rental over a hotel6. Also, these places work well for big groups but might have extra costs6.

Look for Discounts on Longer Reservations

Staying longer? Try to find places that offer deals for more than a week1. These savings can make your stay cheaper while still feeling like home. And you might even get to enjoy some special perks.

Choose Animal-Friendly Rentals to Stay with Pets

Got pets? Many Airbnb and Vrbo spots are okay with that. Just remember to check the pet policy and talk to the owner about your pets. This way, your whole family can move smoothly from one home to the next.

If you’re moving with kids and a pet, vacation homes are great. They give you a private place, a kitchen to cook in, parking, and a safe area. Your stay’s length helps decide what place is best1. And, you might get a deal during the slow season.

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Rental PlatformIdeal Stay LengthPet-Friendly OptionsPotential Discounts
AirbnbShort-term (days to weeks)YesLonger reservations, off-season
VrboShort-term to extended (days to months)YesWeekly or monthly rates, off-season

When picking a home on Airbnb or Vrbo, think about how long you’ll stay, if pets can come, and any deals. This way, you can find a place that fits your budget and makes moving easier for everyone.

Check into an Extended-Stay Hotel

Moving for work? Consider an extended-stay hotel as a short-term home, especially if your job pays for it. These places are top picks for those changing homes7. You’ll find they offer what you need for a longer stay, like kitchens, work areas, and the all-important Wi-Fi7.

The price varies, depending on where you stay, how long, and what extras you get7. On average, a studio can cost from under $40 at simple places to $150 in fancier ones8. But, expect to pay more in certain regions, like California and the Northeast8.

Suitable for Relocations, Especially if Employer Covers the Cost

If the new job is footing the bill, these hotels are a smart, cheap choice for those moving to the suburbs1. Just ask your employer to consider helping you out with a housing allowance that fits the hotel’s cost.

Negotiate an Appropriate Stipend with Your New Employer

When sorting out your moving package, bring up the need for a place to stay right away. Tell them how much it usually costs in the area and how long you might need it8. You and your boss can work out a deal that’s fair for both.

Keep in mind, rooms will be smaller than a standard apartment. That’s tough with a family. Yet, the savings, flexibility, and ease make these hotels a great pick for many on the move.

Stay with Family or Friends

During the home buying process, staying with family or friends is a smart choice. It helps you save money for a larger down payment on your new home. This is key if you’re watching your budget. About 35% of home sellers pick this option when between homes9.

Staying with loved ones means you need to be extra careful. It’s important to not disrupt their daily life. Help with chores, respect their place, and thank them for having you. Talking things through at the start prevents any issues later on.

Leverage Your Personal Network

Also, use your personal network to find short-term rentals. Maybe friends or family have a place you could rent cheaply. Looking within your network might find you a better deal than searching online.

Financial Benefits and Considerations

Staying with family or friends means you spend less on housing. This leaves more money for your new house. The usual cost is around $1,500 a month9. By cutting this cost, you can aim for a larger down payment. This could get you better loan terms and skip private mortgage insurance (PMI). Second home down payments often range from 5% to 20%10.

Temporary Housing OptionAverage Monthly CostPotential Savings for Down Payment
Staying with Family or Friends$0 – $500$1,000 – $1,500
Short-Term Rental$1,200 – $2,000$0 – $300
Extended Stay Hotel$2,500 – $4,000$0

Living with family or friends is great for saving but you should do it the right way. Tell them how long you’ll stay, help with costs, and stay upbeat. This way, you build stronger bonds and save up for your new place.

Rent an Apartment, Condo, or Rental Home

Renting for a year often helps in deciding if you want to buy a house. It stops you from wasting money on a storage unit1. You may have to stay for a year in the rental1. This lets you wait out the market before making a big commitment.

A year lease can turn into a month-to-month agreement. This is great for adapting to market changes1. When you rent a place monthly, you can leave after only a month’s notice2. This is useful if you’re not sure about a new area.

Prices and timing are key to whether renting or buying is better for you2.

There are many things to think about when choosing where to live. Consider how much stuff you have and the area you want to live in1. Homes now sell for higher prices than last year, making it a good time to sell2. The longer you stay in a temporary place, the more you spend on moving2.

The rental’s location affects how easy it is to manage your property and new home. Be sure to prepare your furniture, change your mail, and utilities before moving in2.

When picking temporary housing, think about these:

Housing OptionTypical DurationAdvantagesDisadvantages
Short-term rentals3 to 6 months1More affordable than hotels, offer more space2Can be challenging to find on short notice2
Vacation rentals (Airbnb, Vrbo)Varies, may offer discounts for stays longer than a week1Ideal for short-term or last-minute staysLimited availability for longer stays
Extended-stay hotelsVariesProvide a kitchen, work area, and living space1Can be costlier than short-term rentals, may lack privacy2
Staying with family or friendsVariesCommon solution when between homes, can save money1Potential strain on relationships

Your choice to rent a home depends on what works for you right now. Think over your options and the tips above to find what’s best for your situation.

Live in Your New Home

If you’re buying and selling at the same time, moving right into your new home is a great chance. It needs smart planning and teamwork to shift smoothly from your old place to the new one.

Close on Your New Home Before Selling Your Current One

To move into your new home, you should close the deal before selling your current place. This way, you dodge the expense and stress of finding temporary shelters. But, keep in mind that it usually takes about 42 days for a home to sell after listing11. Also, getting your home ready to sell can take 4 to 6 weeks11. Knowing these timeframes helps in planning the move and managing both buying and selling smoothly.

Secure Enough Funds for a Down Payment or Bridge Loan

Getting enough money for the down payment on a new home before selling the old one is tough. Most count on the money from their old house to help with the new one’s down payment11. If you’re stuck, think about other financial paths like a bridge loan. This loan fills the gap between buying a new home and selling the old, and you typically pay it back within 6 months11.

The price your old house sells for plays a big role in how hard the new down payment hits1. Plus, the current market can make you think twice about buying right away. Weighing your finances against the market helps you decide if moving into your new place immediately is wise.

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Though it’s a lengthy process, buying and selling together means avoiding temporary living. By securing your next home before you sell the old one and figuring out the finances well, you can step into your new house without a break. This way, you smoothly transition into your new home.

Factors Influencing Where to Live Between Selling and Buying

When you’re between selling your current home and buying a new one, many things matter. These include storage needs and costs, along with the situation in the new area. It’s key to think about all of this for your best living choice right now.

Storage Needs and Costs

Your storage needs are a big part of where you can live for a short while. If you have lots of stuff, a storage unit might be necessary. But, this can be costly over time. So, think about what you really need, and plan your budget well1.

Sale Price of Your Old Home

How much you sell your old home for changes what you can do in the meantime1. A higher sale price means you can spend more on a place to stay temporarily. You might even get an agreement to keep living there from the new owners. This would make moving into your new home much smoother.

Market Conditions in Your New Location

The market in your new area also influences your choice between buying or renting first. In areas where it’s better to sell, you might want to rent until prices are better1. Places already built up and with little space for more homes usually have higher prices12. Knowing if it’s a good time to buy or not gives you more power when you’re negotiating13.

Neighborhood Availability and Pricing

Where you can live is based on the area you’re moving to – a city, suburb, or the countryside1. People look for homes near good schools, with easy transport, and where there’s a strong community12. Being close to shops and buses makes a home more valuable12. Think about what the outside space is like, the weather, safety, schools, transport, and how close you’ll be to family and friends13.

Duration of Your Stay in Temporary Housing

How long you’ll stay influences your options for a temporary home1. For a short stay, check out deals on Airbnb or similar places. For a longer break, consider renting a place like an apartment, condo, or house. This way, you can be ready to buy when the market is in your favor1.

Thinking about how long you’ll stay, how much space your stuff needs, what you can afford, and the local housing market helps you decide. Don’t forget what you like in a neighborhood and how close you want to be to certain places. Putting all this together makes finding the right place a bit easier.

Planning Your Temporary Stay

After picking where to stay for a while, planning is key. It’s crucial to get a lease and know what it says. Make sure you look for any fees if you leave early or stay longer9.

Research the Local Environment and Amenities

To be comfortable during your stay, find out about the area’s stores and more. Look for the closest places to buy food, gas, medicine, and how to get around. This is very important if this place is new to you14.

Pack Smart and Utilize Storage Options

When packing for your short stay, be smart and use storage. Put away what you don’t need right now in portable containers. This is handy if there’s a gap between selling and buying a home9. Keep everything well-labeled and easy to find, like clothes and travel documents.

In hot real estate markets, moving in with family or friends could save you money. It could help cut moving costs too9. But, if you need your own space, finding a place to rent short-term could be better. Options like apartments, condos, or vacation rentals might cost more but they offer you more freedom during this time9.

Planning well, researching, and smart packing can cut down on worry and make moving easier. Since there’s more people looking for homes now and not as many for sale, it’s best to be ready and stay open to different ideas15.

Handling Timing Like a Pro When You Move

Moving can stress anyone out, especially juggling when to sell and buy a home. You can use many strategies to make the shift smoother, such as overlapping your moving dates. This helps avoid time gaps and reduces stress. It can include staying at a friend’s or finding a short-term place to live1. The key is planning well and being open to change.

Overlap Your Transactions for a Smooth Transition

Give yourself a day or two of leeway by overlapping your selling and buying. This buffer helps deal with any sudden problems. Many find themselves needing temporary homes during this process3. By carefully setting move-in and move-out dates, you can make things less stressful and deal with any issues that pop up3.

Look for Flexible Booking Policies in Temporary Housing

When looking for a place to stay for a short while, find somewhere that lets you change dates if needed. While it may cost more, short-term rentals are a good option for many. Places like Airbnb and Vrbo offer short-term stays that save money compared to a hotel1.

Maintain Open Communication with All Parties Involved

Keep talking to everyone involved, from agents to family members. Good communication is essential. It helps deal with unexpected changes and choose where to temporarily stay2.

Plan for the Unexpected and Have a Contingency Plan

Expect the unexpected by having a backup plan. Things may not always go as planned, but being ready helps a lot. Think about how long you’ll need a place to stay and how much you can spend. Also, consider when you’ll get the money from selling your old home1. Using professional movers can also take a weight off your shoulders during this busy time.

Temporary Housing OptionAdvantagesConsiderations
Short-Term RentalsHome-like environment, flexible termsMay be more expensive than other options3
Extended-Stay HotelsAmenities like kitchenette and laundry facilitiesHigher costs over the long term, limited space31
Staying with Family or FriendsCost-effective, supportive environmentPotential for tight living quarters, requires communication and consideration31
Rent-Back AgreementsRemain in current home for a short period after saleRequires negotiation and legal agreements, typically valid for up to 60 days32

With the right approach, dealing with timing issues during moving doesn’t have to be too hard. Stay flexible. Keep talking. And always have a plan B. This can turn your moving process into a much smoother experience.

How to Avoid the Temporary Housing Dilemma

When moving from your old home to a new one, the time gap between these transactions can cause issues3. This often leads to problems like paying for short-term housing, living in extended-stay hotels, or needing to stay with others3. But, there’s a solution to skip all this. It’s through “Buy Before You Sell” programs.

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These programs let you buy your new house before selling your old one. This gets rid of the need for temporary housing. They offer a mortgage for your new house while you’re still in the old one. This makes you a cash buyer, which is a big plus in markets where home prices are rising fast16.

Consider “Buy Before You Sell” Programs

Choosing a “Buy Before You Sell” program means you won’t need to worry about finding a short-term place to live. You won’t have to think about how long you’ll be somewhere temporary or troubling friends or family3. Instead, you can focus on settling smoothly into your new place.

Secure Your New Home Before Listing Your Current One

One great thing about these programs is being able to get your new house before selling the old one. This gives you time to find a home you really love without rush. It stops you from needing to rent your old place back, which is common for about 60 days16. Instead, you can just move straight to your new house.

Become a Cash Buyer for a Competitive Advantage

In the tough real estate market today, being able to pay cash gives you a big edge. With “Buy Before You Sell” programs, you’re set as a cash buyer from the start. This can make your offers more appealing to sellers, especially when several buyers are interested in the same home.

Once you’re in your new place, you can sell your old one. You’ll save money and avoid the troubles of temporary housing, like expensive rentals or corporate stays. It also means you don’t have to worry about arranging big moves or meeting tight deadlines3.

To sum up, “Buy Before You Sell” is a smart answer to the challenge of temporary housing. It lets you get your new house first, setting you up as a cash buyer. This leads to a smoother and less stressful move into your new home.

Ensuring a Smooth Transition from Old House to New

After you move into your new house, it’s crucial to finalize things at your old place and temporary home. Start by setting up utilities and updating your address. Don’t forget to clean up where you stayed temporarily. Doing these will help you get back to a normal routine quickly.

Before leaving your temporary place, clean and organize it. This prevents any extra charges and keeps your relationship with your landlord good. Closing on a new house takes between 4 to 6 weeks11. Use this time to finish these tasks.

In your new home, ensure your mail keeps coming by updating your address. Do this with the post office, banks, and anyone else important. Since most people aim to close both home sales at the same time11, it’s good to be quick with these updates.

You shouldn’t overlook setting up utilities in your new place either. Arrange for services like electric and internet ahead of time. This will avoid any delays. A bit of planning now will make your move much smoother.

Ensuring a smooth transition during a move is about peace of mind and reducing stress levels.

Buying before selling has its advantages, including peace of mind. But, it means handling two mortgages till you sell the old house. And you may not have extra cash as a buffer17.

It helps to know the good and bad of each approach. Then, look into options like bridge loans17 and other financing ideas. By making smart choices, you can enjoy your new place and build great memories there.

Reflecting on Your Moving Experience

After moving and settling in your new place, it’s key to reflect. Think about what went well and what could be better for next time. Look at where you stayed temporarily and see if it worked for you. This includes how much it costs to live there and if it’s good for schools or finding a doctor18.

Think about how you managed your move’s timing and details, and if any part was tough. Were you able to mix moving with work and fitting in with new friends? This self-reflection can show you your moving skills. It helps you see where you’re strong and what you can improve for the future.

Evaluate What Went Well and What Could Be Improved

When looking at your move, list what you did well and what you could do better next time. This might cover your temporary housing, how smoothly you got everything ready and settled in, how well your helpers did, and how fast and smoothly you moved.

Finding out what you did great and need to work on is a good start. It helps you plan for better moves later. This way, you’ll have a plan ready for a smoother experience next time.

Apply Your Newfound Knowledge to Future Moves

Your move teaches you a lot for the next ones. Think about what you learned about moving to a new place. This might be about costs, a place’s popularity, busy roads, and the importance of schools and hospitals18.

Use what worked last time and find new ways to fix what was hard. By learning from your move, you’ll be ready for future ones. This makes the next move less stressful and more successful.

Aspect of MovingWhat Went WellAreas for Improvement
Temporary HousingConvenient location, affordable rentConsider a longer lease for more stability
Logistics CoordinationUtilities and address changes completed efficientlyStart the process earlier to avoid last-minute stress
Packing and UnpackingLabeling system made unpacking easierDeclutter more before packing to reduce overall load
Support and AssistanceFriends and family helped with heavy liftingConsider hiring professional movers for a more efficient process

“Moving is not just about relocating your belongings; it’s about embarking on a new chapter in your life. By reflecting on your experiences and applying the lessons learned, you can make each move a stepping stone towards personal growth and success.”

Learning from your move is a chance to grow. Approach future moves with knowledge and positivity. This way, you welcome new life experiences with open arms.

Conclusion

Choosing temporary housing when selling or buying a home is a personal decision. It depends on money, what you like, and your situation15. By knowing your choices and how to act on them, you can pick the best move. It will be a mix of feeling good, being easy, and not too expensive19.

Be careful with the steps you take during this time. Things like the local real estate situation, sales data, and how long houses stay for sale matter a lot19. Also, look at your savings, what you earn, and the money you have for a new place. This will help you find the best temporary home fit for you19.

It’s important to be ready for change. The market, how long houses are for sale, and what’s available can shift quickly19. Staying open to new ideas, like programs that let you buy before selling, can make things smoother. It could even skip the need for temporary housing15.

With careful planning and an open mind, this time can be more exciting than nerve-wracking. By wisely choosing your next steps, based on what makes sense for you, you can handle this challenge well19.

Frequently Asked Questions (FAQ)

Many questions come up when looking for a temporary home before selling your current one. The cost can change based on the lodging you choose, like short-term rentals, extended-stay hotels, or deals with the buyer to rent the house back. Looking for places like these in certain areas can be done online through sites such as Airbnb or Vrbo. You could also ask a local real estate agent for help, since they know the market well10.

If your plans to sell your house change suddenly, you’ll need a backup plan. This might mean staying longer in a temporary place or finding other options, such as living with family or friends. This is until you can sell your house to buy a new one or find somewhere to stay permanently10. A good tip for avoiding too much hassle with moving twice, quickly, is to get rid of things you don’t need, put your extra stuff in storage, and hire movers. This can make the whole process much easier10.

It’s smart to try and time the sale and purchase of homes so they both close around the same time10. There are several ways to make this work. For example, you might get a bridging loan20. Or, you could use the money from your current house to cover the down payment of the new one, which may save you from making double mortgage payments and make getting a mortgage for your new home easier10.

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  2. https://ibuyer.com/blog/where-to-live-between-selling-and-buying-a-house/
  3. https://orchard.com/blog/posts/where-to-live-between-selling-and-buying-a-house
  4. https://www.chase.com/personal/mortgage/education/financing-a-home/rent-back-agreement
  5. https://www.rocketmortgage.com/learn/rent-back-agreement
  6. https://www.truehold.com/post/where-to-live-between-selling-and-buying
  7. https://www.windermere.com/blog/where-to-stay-while-you-sell-your-home
  8. https://www.upnest.com/1/post/5-temporary-housing-options-to-consider-when-moving/
  9. https://www.fultonbank.com/Education-Center/Home-Ownership/How-to-Buy-a-House-While-Selling-Your-Current-Home
  10. https://time.com/personal-finance/article/how-to-buy-and-sell-a-house/
  11. https://www.homelight.com/blog/buyer-how-to-buy-a-house-while-selling-your-own/
  12. https://www.investopedia.com/financial-edge/0410/the-5-factors-of-a-good-location.aspx
  13. https://www.rocketmortgage.com/learn/where-should-i-live
  14. https://www.rocketmortgage.com/learn/buy-and-sell-home
  15. https://www.bankrate.com/real-estate/sell-your-house-while-buying-another/
  16. https://dunesproperties.com/2023/10/where-to-live-between-selling-and-buying/
  17. https://www.quickenloans.com/learn/buy-and-sell-home
  18. https://www.invitationhomes.com/blog/top-factors-when-considering-where-to-move
  19. https://www.mercuryinsurance.com/resources/home/buy-sell-home-same-time-guide.html
  20. https://www.sandradavidson.com/selling-and-buying-a-house-at-the-same-time/

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