If you’re building a new home, then there’s a good chance you’re still living in another home that you will need to sell at some point. Juggling the two processes at the same time can be tricky, and there are many things to consider.

Building a New Home Takes Time

Unless you are considering buying a quick-delivery home, you are probably going to have a process of between six months and one year ahead of you when you choose to build a new home.  The size of the home, the complexity of the build, and a variety of other factors play into that estimate.  Chances are your builder will be able to tell you approximately how long you are looking at in your particular case, but selling your home too early could result in a tricky transition.

Talk to Your Builder, and a Realtor

While your builder can give you a good idea of how long it will take to build your new home, they may not be sure how long homes like your existing one take to sell.  This is particularly true if you are moving from a different city or state.  It’s a good idea to talk to a realtor at the same time as you start making plans to build, to find out what they think the waiting time will be to sell your home.

Arranging to Rent Your Home After Sale

One way to get around the problem of transitioning from your current home to your new home, while still freeing up the equity in your current property, is to find a buyer who is looking for an investment property to rent out—and then renting your home back from them after the sale goes through. As an added bonus, you will only have to move once!

Short Term, Small Scale Rentals

If you can’t rent back your current home after a sale goes through, another option is to find a smaller, cheaper, short term rental in your new community.  Find a resonable storage unit to store most of your belongings in until your new home is completed, and then move in.  In some cases, family or friends may even be able to help with short term accommodation while you wait.

Let Your Finances Be the Deciding Factor

Ultimately, it is your financial situation that will determine how you approach the timing of selling your current home while building a new one.  If you can afford to carry two mortgages for a while, then it may be simpler just to wait until the new home is almost ready before you list the current home.  If not, selling first, renting a cheaper property and then begin building of your dream home may be a better solution.  Some people may even find that they are able to keep their existing home as an investment property, and still build a new home.

As scary as it can be to figure out the logistics of selling an existing home and building a new one, it is something that people do all the time, and there are people who can advise you what the best course of action is. Find a builder you like, and start with them. They may have a few ideas you hadn’t thought of yet, and they can certainly give you great advice from their own experience.