5 Tips for Coordinating Moving into a New Construction Home While Selling Your Existing Home

Moving is always stressful, but it’s even more hectic when you’re moving into a house that is still under construction.

Building a custom home is a dream for many Americans. New builds, however, get expensive fast. It costs around $300,000 on average to build a house, not factoring in the cost of the land itself. The expenses alone increase the pressure to sell your current home to free up funds, but you can’t move into a house that isn’t finished.

It can feel overwhelming to strike the delicate balance between selling your old home and moving into your new construction. Here are 5 tips to make coordinating the transition into your brand-new home easier.

1. Understand Your Timeline

Unless you’re building a tiny house, it takes anywhere from 6 to 12 months to build a home from the ground up. New construction homes also present unexpected delays when materials are back ordered or there’s something wrong with the design plan. Understanding the potential for these delays will make you more flexible as you plan your move.

Consider where you’d need to add buffer time to construction. Do you want custom cabinets or a uniquely-shaped kitchen island? Those features may take longer for your team to order and build. Factoring in any hurdles or setbacks during your build will help you feel more prepared as you plan your move.

Start by working backward from your ideal move-in date in the best-case scenario, where you close on your home sale within a few days of your new home being finished. How much time will you need to move? How long are comparable homes available on the market in your current neighborhood? Is your move local or long-distance? Understanding your best-case scenario while factoring in time for building delays will give you a clearer timeline for your move.

2. Double-Check Your Moving Budget

How much money you have to move will depend on how you financed your current home and your new build. Having two mortgages at once, even for a short term, can put a strain on your household finances. One-third of people who built their own homes regretted stretching their budgets. Cutting your moving costs will help ease the financial strain of building a new home.

Look for ways to save on moving expenses as your new build’s completion date approaches. If you plan to hire movers, shop around online or on the phone to make sure you’re getting a fair price. Consider alternatives to full-service movers, like same-day moving help unloading boxes that you packed and drove yourself. Source supplies like padding and boxes from family, friends, and neighbors.

3. Communicate With Your Contractors and Realtors

When it comes to communicating with your building partners, more communication is always better. Contractors and realtors are your front-line resources. Staying in touch will enable you to adjust your moving timeline and plans according to the most up-to-date information.

Your contractor or site project manager is your best resource for up-to-date timelines on your build. Keeping that line of communication open, even when things go wrong, will make sure all parties are as informed as possible.

A real estate agent is another important resource for timing the sale of your current home. Even if selling your house online seems more expedient, a professional realtor will provide expertise on your local housing market that will help you make the best decisions possible.

4. Maximize Your Short-Term Housing Options

For most people navigating a new home build, the worst-case scenario is being left without a place to live. Alleviate this worry by making a contingency plan in case your house sells before your new build is finished. Start by exploring options for short-term housing in your area. Some popular options include:

• Staying with or renting from family or friends
• Vacation rentals
• Long-term hotels
• Subletting
• Month-to-month rentals

You should also consider storage for your belongings while you’re in short-term housing. Price out options for large storage pods and other self-storage if your temporary housing solution won’t have enough space. Having a short-term housing option in case of emergencies will reduce your anxiety as you prepare to sell your current house.

5. Set Up Sales Contingencies

Sell your home quickly without taking on excess risk. As the seller, you can set the terms of the sale and put contingencies in place that will decrease your risk during this time of uncertainty. Some examples of contingencies include:

• Kickout clauses
• Suitable property contingency

A kick-out clause gives you the power as the seller to reject an already accepted offer in favor of a new one. A suitable property contingency would let you revoke a purchase contract if you haven’t found housing or your new home isn’t finished.

These types of contingencies reduce your personal risk as you transition to your new build. Home buyers can be hesitant to make an offer on a home with these kinds of contingencies. Real estate professionals can help you understand if selling with contingencies is right for you.

Move to Your New Construction Home With Peace of Mind

Coordinating a build and a move simultaneously is a lot of work. The financial burden adds another layer of anxiety and risk. Manage the uncertainty around the building and moving process by creating a realistic timeline that allows for surprise delays. Communicate with your contractor and real estate agent to make sure everyone has the right information about the build.

Use your budgeting skills to understand exactly how much you can afford to spend on a move, and find ways to cut costs if needed. Have a plan in place if the build timeline doesn’t line up with the sale of your home. Finally, explore selling your home with contingencies that will reduce your risk. With these tips in mind, you’ll be in your new construction home in no time.