Are you someone who has been thinking of selling a home but knows the market is hot and you have no idea where you’re going to move? I’ve got three tips for you that might help you out.
This week I want to talk about a topic plaguing a lot of the real estate industry. Precisely, I want to address the mindset of a lot of sellers who would typically be selling their homes. It’s no secret that right now, there is not a lot for sale. This is causing a lot of homeowners to avoid selling their home for fear of not finding one when they buy. They see that the market is excellent and understand they would get top-dollar for their home. They know that prices are higher than they have ever been, and interest rates are at record lows. They then ask themselves, “Why would I sell right now if there’s a good chance I won’t find a home to move in to?”
If you’re worried about not being able to find a home when you go to sell yours, here are three avenues you can take to avoid that problem:
1. Buy First and Carry Two Mortgages for the Short Term
Suppose you are a person who can carry two mortgages, even for just a short time. In that case, you should investigate buying your new home first and then immediately selling your home after. If you are someone who is in that position, it is the perfect place to be. You can stay in your home, you are not in any rush to get out, and you can take your time looking for what you want. When the right property comes up, you can snatch it up. Now, you should talk to a lender to ensure that you’re eligible, and even investigate lower down payment programs if immediate cash is a concern. This seems obvious, but it’s 100% the easiest way to ensure you have somewhere to move when you go to sell.
2. Leverage the Market to Maximize Occupancy
Not everyone is in the position where they can afford to buy a home before they sell. I would say that the average person has to take the proceeds from the house that they are in now to buy the home they are moving into next. If you are one of those people, understand that you have a ton of leverage as a seller right now. We talked about it being a hot seller’s market, so you need to leverage that into occupancy in your home.
So, how does occupancy work? When you get an offer on your home, there are usually 30 to 45 days, depending on what happens in escrow, to get the transaction closed. That is assuming the buyer buying your home is getting a mortgage. Occupancy is time after the closing that you are allowed to stay in the house. In this circumstance you typically rent back to the new owners for a short period until you can move out. The length of time and cost are agreed upon upfront, in the offer, so you will have plenty of notice. Because the market is so in your favor right now as a seller, you should be able to leverage that to get the maximum amount of time.
3. Buy New Construction
Have you considered new construction? When you go to a builder, especially in a pre-plotted neighborhood, and decide to build a home, there may be a little bit of fluctuation in the timeline depending on weather and supplies. Still, for the most part, they can give you a pretty realistic idea of how long it’s going to take to build that home. Let’s say that nine months happens to be the entire process from when you turn in your deposit to when you get the keys to your new home. If that’s the case, you have a lot of time to prepare for the sale of your home. As you get closer and deal with any types of fluctuations due to weather or supplies, you’re going to start to get a definitive timeline for when you need to sell. At that point, if you’re still in a good seller’s market, you know that when you put your home on the market and price it right, and you stage it right, and you’re working with a good agent, it’s going to sell quickly.
Hopefully this brought you value and gives you some avenues to explore if you want to sell and are worried about buying! With that said, even though most people want to avoid a double move (buying or renting while waiting to find the home you want), at the end of the day, it isn’t the worst thing right now. Interest rates are super low, and you know you can sell your house at a premium in this market Capitalizing on this current market, even if you have to rent for a little bit while you find your next home, isn’t a bad idea if you are looking at being in your next home for the long term.
If you have any questions or comments, just let me know. Thanks so much, and have a great day.