Are you considering selling your home while shopping for a new one at the same time? The process can be daunting, especially in a Seller’s Market where demand remains strong, and inventory often sells quickly. The complex logistics of the process can be mind boggling for even the most seasoned homeowners.
In a market with plenty of competition for desirable homes, it may be tempting to “wait it out” and sell/buy at a future date. However, ‘waiting out’ a competitive housing market may not be the best idea because inventory is expected to remain limited in the most coveted neighborhoods for the foreseeable future.
With that said, it’s definitely not time to throw in the towel. As a current homeowner, you can capitalize on the existing seller’s market which may actually set up the opportunity for a great transition to the home of your dreams.
Let’s discuss the most common question I hear from clients who are facing this challenge.
“WHAT WILL I DO IF I SELL MY HOUSE BEFORE I CAN BUY A NEW ONE?”
If you are fortunate enough to sell your home quickly, compromise becomes the name of the game. In our current real estate market, it may be tough to plan ahead and predict accurately when you’ll be able to move into your next home.
But even if your home sells before you have secured your next property, don’t panic. This is time to be flexible and creative.
Advance planning is an essential part of the entire process. Before listing a home, consider these tips to assure that you are in the best possible position for moving forward:
Tip #1: Flex your Seller Advantage.
Many buyers are willing to make considerable concessions to secure the home they want. Rent-back, which is increasingly common as a seller incentive, allows the seller to continue to live in the home after closing for a set time ad fee.
For many Sellers, this offers a unique opportunity to tap into their equity to secure down payment money for their own purchase. There are many considerations relating to rent-back such as liability, but a well-written contract can protect both parties and help the Seller leverage their next home purchase more easily.
Tip #2: Don’t Be Afraid of Short-Term Housing Options
Sure, it’s a hassle to move out of your old home before you’re ready to move into your new one but it’s certainly not uncommon. Some sellers are fortunate enough to have family members or friends who are willing to house them for a short period of time. But if not, there are lots of options for short-term housing including vacation rentals, extended stay hotels or month-to-month apartment rentals.
For some displaced sellers, renting in the neighborhood they are considering can give them the chance to get to know the area better and make a more informed decision for their upcoming home purchase.
Tip #3: Embrace the Idea of Selling Now and Buying Later.
Instead of getting bogged down with the timing of the sale of a current home and the purchase of a new one perfectly, sellers might consider focusing on just one step at a time. Consider these advantages:
First, the purchase will not be contingent upon the sale of an existing home and sellers can be confident with the amount of cash on hand. This will put them in a much better position when it comes to buying their next home. Secondly, focusing on one aspect at a time allows them the opportunity to move forward in each aspect of the process with more confidence.
Finally, the pressure to find a ‘perfect” home in a set amount of time can be overwhelming. Having the opportunity to move forward more intentionally may ultimately prove to be a great option.
Talk to me early to get great advice for your situation. Together, we can work on a plan to help YOU achieve your real estate dreams on your timeline and within your budget.
Contact me for a free consultation so that I can help you review your options and decide the best way forward.