How to Move Before Selling Your House

Moving to a new home before selling your current one is common, often due to new jobs, family, or to avoid a rushed transition. Careful planning makes managing two properties manageable. This guide provides insights into the financial, logistical, and operational aspects of selling a home after relocating.

Assessing Financial Implications

Moving before selling means carrying expenses for two residences: dual mortgage or rent, utilities, and insurance. Budgeting requires assessing your financial capacity, as simultaneous costs can strain finances. Project these expenses for several months, accounting for potential delays.

Understanding home equity and having sufficient savings are key. Home equity is your property’s outright portion, calculated by subtracting your outstanding mortgage balance from its market value. Savings provide a buffer for unexpected costs or extended dual ownership. Build an emergency fund.

Financial tools can help manage cash flow during this transition. A bridge loan is a short-term financing option providing funds for a new home purchase by leveraging your current home’s equity. These loans offer quick access to capital, but have higher interest rates and shorter repayment periods (6-12 months). Borrowers may also incur origination fees.

A Home Equity Line of Credit (HELOC) allows access to funds from your existing home’s equity. HELOCs offer flexibility, as you only pay interest on the amount borrowed, and payments can sometimes be interest-only. Qualification requires solid income, sufficient equity, and a good credit score (often above 680). While HELOCs can provide funds for a down payment or closing costs on a new home, their presence may affect your ability to qualify for a new mortgage, as additional debt is factored into your debt-to-income ratio.

Selling a primary residence generally allows for an exclusion of capital gains from income, up to $250,000 for single filers and $500,000 for married couples filing jointly. To qualify, the home must have been owned and used as a primary residence for at least two of the five years preceding the sale. While vacant, maintaining compliance with IRS rules is necessary to claim the full exclusion. Consulting a tax professional can clarify specific implications.

Managing the Relocation Logistics

After financial assessments, focus on the physical move. Efficient packing and decluttering are key. Sort items into categories: keep, donate, sell, or discard. Label boxes clearly with contents and room to simplify unpacking, reducing volume and weight, and lowering costs.

Deciding between a DIY move and hiring professional movers depends on budget, distance, and belongings. Professional movers can cost around $1,250 for a local move, while long-distance moves average about $4,890 for a 2-3 bedroom household traveling 1,000 miles. Costs vary based on distance, weight, and additional services like packing or insurance. Services typically include loading, transport, and unloading.

Temporary storage solutions are often necessary when moving before selling, especially for items not immediately needed or for staging the former home. Portable storage containers can range from $400 to $700 for local moves and $900 to over $4,500 for long-distance moves, often including 30 days of free storage. Containers come in various sizes.

Transferring and setting up utilities at both addresses requires coordination. Contact utility providers—electricity, gas, water, internet, and trash collection—at least two to four weeks before your move-out date. Schedule disconnection at the old home for the day after your move, and activation at the new home for your arrival date.

Update your mailing address with the postal service. The United States Postal Service (USPS) offers an online change of address service for a small identity verification fee, typically $1.10 to $1.25, or it can be done for free in person at a post office. USPS recommends submitting the request at least 7 to 10 days before your desired mail forwarding start date. Mail forwarding usually lasts for a year for most items.

Maintaining and Presenting the Vacant Property

After vacating, maintaining the property’s condition for sale is a priority. Thoroughly clean, address minor repairs, and ensure landscaping is well-maintained for curb appeal. Overgrown shrubbery or disrepair can signal vacancy to intruders, so a tidy exterior creates a positive first impression.

Staging a vacant home helps buyers visualize living in the space. Professional staging costs between $4,000 and $6,000, typically involving rented furniture and decor, with some stagers charging a monthly rental fee ($500-$1,500 per room). Virtual staging offers a lower-cost alternative, digitally furnishing photos of the empty property.

Security measures for a vacant property deter theft and vandalism. Ensure all windows and exterior doors are locked and secured. Installing a monitored security system, security cameras, and motion-activated exterior lighting provides enhanced protection. Setting interior lights on timers can create the illusion of occupancy, and regularly redirecting mail or having a trusted neighbor perform periodic checks helps.

Ongoing maintenance for a vacant home includes regular lawn care, seasonal tasks like snow removal, and general upkeep. Hiring a service to perform these tasks, especially if you have moved a considerable distance, can be a worthwhile investment, ensuring the property remains appealing.

Inform your insurance provider about the property’s vacant status. Standard homeowners’ insurance policies may have limitations or exclusions for vacant homes, often defined as unoccupied for 30 to 60 days. Failure to notify your insurer could result in denied claims, so a vacant property insurance policy or an endorsement may be necessary.

Selling the Vacant Property

Selling a vacant property requires a strategic approach, starting with selecting a real estate agent experienced in such sales. An agent familiar with marketing an empty home can provide guidance on pricing, presentation, and negotiation. Their expertise can highlight the property’s potential.

Marketing a vacant home can leverage specific tactics to attract buyers. Professional photography is key, as high-quality images showcase the property’s features effectively. Virtual tours are beneficial for vacant homes, allowing buyers to explore the space remotely and visualize its layout without physical furniture. These immersive experiences increase engagement and reach a wider audience.

Managing showings and accessibility for a vacant property requires a reliable system. A real estate agent can coordinate access through secure lockboxes or smart home devices, ensuring buyers and their agents can view the home conveniently. Prompt feedback from showings helps understand buyer perceptions and adjust marketing strategies. An accessible property encourages more viewings.

The vacant status of a property can influence its pricing strategy. While maximizing value is the goal, some sellers opt for a quicker sale to minimize dual housing costs and maintenance expenses. An experienced agent can help determine a competitive price that balances market conditions with the seller’s financial objectives. Average real estate agent commissions in the U.S. typically range from 5.44% to 6% of the sale price, generally split between the listing and buyer’s agents. This cost is usually deducted from sale proceeds.

Negotiation and closing for a vacant property follow standard real estate procedures. With the seller absent, clear communication between the agent and seller is important. Sellers’ closing costs typically range from 6% to 10% of the sale price, including agent commissions, transfer taxes, and title fees. Other costs may include escrow fees and prorated property taxes. These expenses are usually deducted from sales proceeds.