Common Issues: Need Funds From Home To Buy The Next Home

The Funds to Buy The Next Home

It is common to want, and even need, to use the funds that have built up in the form of equity on one’s current home to buy a replacement home. A lot of people in Naples, and abroad, require this as historic inflation has been eating up savings and monthly budgets. Interest rates, while just about at the historical average, are still considered to be high because real estate prices are so high, thus making the monthly payment on a new mortgage either uncomfortable, or just plain out of reach. Increasing the down payment or just eliminating a mortgage altogether are ways to bring that new home into the affordable range. But how do you do it?

Most people know of the “Contingent Offer”, where you write an offer on a replacement home that is “contingent” on the sale of your current home. The idea is to get your offer accepted on the replacement home and then list your current home and get a buyer on that so that you close at the same time, using the funds from one home to buy the next home. While this strategy does work, sometimes, it’s not very strong in the current 2023, soon to be 2024, Naples housing market. There are also bridge loans, HELOC’s and borrowing money from family that can support the transition from selling one home to buy another. But there is still a better option. Bridge loans and HELOC’s are expensive, and asking family for a loan is tough.

The Need to Buy The Next Home

Years ago, I was working with some people who wanted to sell their home but needed funds from their current home to buy the next home, which was located on the other side of town. Through all of their years buying and selling homes and having tons of friends who have likely done the same, they had never heard of the strategy I proposed to accomplish this task. The owners were so excited that they dropped the idea of trying to write offers contingent on the sale of their home, which was near impossible to achieve in that hot market that really wasn’t too different from the market of 2023.

I immediately started interviewing photographers and jotting down marketing ideas tailored for their specific home. A custom marketing plan to bring out the life of their property with the distinct purpose to inspire the pool of buyers and REALTORS® in the not only the regional real estate market, but the worldwide luxury market as I have been a longtime Luxury Specialist in several markets in California & Naples.

Then they changed their mind. The genius strategy that would have made the whole process seamless, enjoyable and safe was vetoed somehow. This story may sound familiar because it happens often. Sometimes circumstances change in one’s life which causes the process to stall out, But often times the pullback is rooted in fear, causing one to second-guess their initial instincts. But that’s OK! This process where homeowners need funds from one home to buy another home is a very personal experience that demands respect and empathy. It is extremely common and it really does take an objective, seasoned professional to guide people through this delicate and emotional journey.

Statistically, most of people’s wealth is in their assets. And with the right agent buy your side, moving those funds from one home to another could help grow those funds even more. So that just shows you how important it is to get into the homeownership club. Once in, you can start building equity by way of paying down the loan and appreciation.

The Team To Buy Your Next Home

The value I bring to my customers and clients is resilient and steadfast. It has to be, or what kind of REALTOR® in Naples would I be? Being soft won’t get you very far in this business. The public deserves a fighter with the aptitude to navigate complicated problems and the emotional maturity to manage the many personalities of a transaction that can be rife with manipulative attacks to try and weaken the opposing party. Yes, that is a long winded definition for negotiation.

So back to the better strategy that you need funds from your current home to buy your next home. My advice is to reach out to me to discuss your situation. My work is sincere, creative and extremely valuable from over 10 years in the business. You can count on me to be on your side and not give up on your dream even when you may want to.

Josh Amolsch | Naples Luxury Real Estate