Esquire Realty Ciaramella & Co.

One of the hardest real estate moves to pull off, logistically, financially, and emotionally, is selling one home in order to fund the purchase of the next one.It can absolutely be done. People do it successfully every day. But it requires proper timing, real education, honest guidance, and a plan that accounts for more than one possible outcome.

🔹 𝗧𝗛𝗘 𝗣𝗔𝗥𝗧 𝗠𝗢𝗦𝗧 𝗦𝗘𝗟𝗟𝗘𝗥𝗦 𝗗𝗢𝗡’𝗧 𝗥𝗘𝗔𝗟𝗜𝗭𝗘:

In New York State, the most commonly used Contract of Sale gives a buyer 45 days to obtain a mortgage commitment. If the buyer receives a good faith loan declination within that window, the contract is cancelled and the deposit is returned.

Even after a commitment letter is issued, there is still a small but real risk of post commitment failure to fund, where a loan falls apart late because of final conditions, employment changes, documentation issues, or underwriting concerns.

In other words:

👉 An accepted offer is not the same as a guaranteed sale.

👉 A contract is not the same as money in the bank.👉 A mortgage commitment is an important milestone, but the details of that commitment still matter.

🔹 𝗖𝗔𝗡 𝗬𝗢𝗨 𝗠𝗔𝗞𝗘 𝗬𝗢𝗨𝗥 𝗣𝗨𝗥𝗖𝗛𝗔𝗦𝗘 𝗖𝗢𝗡𝗧𝗜𝗡𝗚𝗘𝗡𝗧 𝗢𝗡 𝗬𝗢𝗨𝗥 𝗦𝗔𝗟𝗘?

One possible way to protect yourself is to make your purchase contingent on the successful sale of your current home.That means your obligation to complete the purchase depends on your own sale moving forward or closing under the terms negotiated in the contract.

This can be a very valuable protection, but whether a seller will accept it depends heavily on the market. If you are purchasing in a slower market, or the property has been sitting for a while, the seller may be more open to it. If you are competing in a hot Long Island market with multiple strong buyers, you are very unlikely to win the house with a sale contingency attached to your offer.So yes, ask whether it is possible. But do not build your entire plan around receiving a contingency that the market may not allow.

🔹 𝗪𝗛𝗬 𝗜 𝗢𝗙𝗧𝗘𝗡 𝗧𝗘𝗟𝗟 𝗦𝗘𝗟𝗟𝗘𝗥𝗦 𝗧𝗢 𝗪𝗔𝗜𝗧:

If you need the proceeds from your sale to fund your purchase, and your purchase is not protected by a sale contingency, the safest advice is generally this:

DO NOT GIVE A DEPOSIT ON YOUR PURCHASE UNTIL YOUR OWN BUYER HAS A MORTGAGE COMMITMENT.

And even then, you still need to understand what is outstanding before assuming the deal is completely secure.This does not mean that every seller must sit still and wait indefinitely. It means you should know exactly what level of risk you are taking before you sign another contract.

🔹 𝗡𝗢𝗧 𝗔𝗟𝗟 𝗠𝗢𝗥𝗧𝗚𝗔𝗚𝗘 𝗖𝗢𝗠𝗠𝗜𝗧𝗠𝗘𝗡𝗧𝗦 𝗔𝗥𝗘 𝗘𝗤𝗨𝗔𝗟:

This is where experience matters. There is a major difference between a clean commitment and a commitment loaded with unresolved conditions. The conditions list tells the real story. Some conditions are routine. Others are red flags. A knowledgeable agent should know how to review the commitment, communicate with the attorneys and lender, and identify unresolved underwriting risks.

Many agents never even ask to see this document.

🔹 𝗛𝗔𝗩𝗜𝗡𝗚 𝗔 𝗣𝗟𝗔𝗡 𝗕:

Waiting for your buyer’s mortgage commitment is not the only possible strategy. Before you begin shopping, speak with a knowledgeable lender and find out whether you may qualify to purchase without immediately using the proceeds from your sale.

Do you have savings, a 401(k), another retirement account, investments, or other assets that, together with your income, could make you eligible for financing as a backup plan?You may have no intention of using those funds. You may strongly prefer not to touch them at all. But if you are willing and able to access them temporarily in a true worst case scenario, that can create flexibility and loosen the timeline.The goal is not to convince you to drain your retirement account or make a financial move you are uncomfortable with. The goal is to know whether you have another path available before you become contractually obligated to buy.

A Plan B can be the difference between feeling trapped and feeling prepared.

🔹 𝗧𝗛𝗘 𝗗𝗔𝗡𝗚𝗘𝗥𝗢𝗨𝗦 𝗔𝗗𝗩𝗜𝗖𝗘 𝗦𝗘𝗟𝗟𝗘𝗥𝗦 𝗚𝗘𝗧 𝗔𝗟𝗟 𝗧𝗛𝗘 𝗧𝗜𝗠𝗘:

“Go out shopping now.”“You’ll be fine.”“We’ll figure it out.”And yes, if you are staying somewhat local, another purchase may create another deal for the same agent. 😉 But the advice should be based on your financial position and your level of protection, not on anyone’s desire to keep transactions moving.

The nightmare scenario is going under contract on a purchase, putting down a large deposit, relying entirely on your sale proceeds, and then finding out that your own buyer’s financing is shaky or falling apart. Now you are contractually obligated to buy, with no clear way to fund the purchase.

👂🏼𝗦𝗢 𝗪𝗛𝗔𝗧 𝗜𝗦 𝗧𝗛𝗘 𝗔𝗡𝗦𝗪𝗘𝗥❓❓

👉 𝗡𝗲𝗴𝗼𝘁𝗶𝗮𝘁𝗲 𝗮 𝘀𝗮𝗹𝗲 𝗰𝗼𝗻𝘁𝗶𝗻𝗴𝗲𝗻𝗰𝘆 𝗶𝗳 𝘁𝗵𝗲 𝗺𝗮𝗿𝗸𝗲𝘁 𝗮𝗹𝗹𝗼𝘄𝘀 𝗶𝘁.

👉 𝗪𝗮𝗶𝘁 𝗳𝗼𝗿 𝘆𝗼𝘂𝗿 𝗯𝘂𝘆𝗲𝗿’𝘀 𝗺𝗼𝗿𝘁𝗴𝗮𝗴𝗲 𝗰𝗼𝗺𝗺𝗶𝘁𝗺𝗲𝗻𝘁.

👉 𝗖𝗮𝗿𝗲𝗳𝘂𝗹𝗹𝘆 𝗿𝗲𝘃𝗶𝗲𝘄 𝘁𝗵𝗲 𝗰𝗼𝗻𝗱𝗶𝘁𝗶𝗼𝗻𝘀 𝗮𝘁𝘁𝗮𝗰𝗵𝗲𝗱 𝘁𝗼 𝘁𝗵𝗮𝘁 𝗰𝗼𝗺𝗺𝗶𝘁𝗺𝗲𝗻𝘁.

👉 𝗗𝗲𝘁𝗲𝗿𝗺𝗶𝗻𝗲 𝘄𝗵𝗲𝘁𝗵𝗲𝗿 𝘆𝗼𝘂 𝗵𝗮𝘃𝗲 𝗮 𝗿𝗲𝗮𝗹𝗶𝘀𝘁𝗶𝗰 𝗣𝗹𝗮𝗻 𝗕.👉 𝗨𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱 𝘁𝗵𝗲 𝗿𝗶𝘀𝗸𝘀 𝗯𝗲𝗳𝗼𝗿𝗲 𝗲𝗻𝘁𝗲𝗿𝗶𝗻𝗴 𝗶𝗻𝘁𝗼 𝘁𝗵𝗲 𝗻𝗲𝘅𝘁 𝗰𝗼𝗻𝘁𝗿𝗮𝗰𝘁.