Thinking of selling, but have nowhere to go?!
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I can’t tell you how many clients I have spoken with recently who are interested in selling, but wonder, “where will I go once I sell?!” And this is a totally valid question. Right now we are seeing a strong seller’s market for single family homes and depending on the neighborhood, condos with three bedrooms or more. This means that sellers are definitely in the driver’s seat during negotiations, and that many homes are going for over list price.
As I mentioned though, many of our clients who want to sell their home are getting tripped up wondering where they will go once they sell. Afterall, the lack of inventory impacts sellers too when they are ready to look for their next home.
My overall message is that there are several ways to make it work, and it is definitely worth it to make it work. Interest rates are low but climbing, and similarly, inventory is low but also climbing. So, if you are thinking about selling, now is the time – do not wait! We are here to help work out all the details. In fact, I am sharing my three best tips and advice for clients to navigate this current market and find a great replacement home!
Negotiate a longer close on the property you are selling: Due to high demand, buyers are willing to be flexible on nearly every contract point, including a longer close. Negotiate additional weeks or even months in some cases to find your replacement home.
Close and lease back: Another option is closing on your current home and then leasing back from the buyers. This way you have the funds from your sale available to make your next purchase and you don’t have to include a home sale contingency (which would weaken your offer!).
Find a short or long-term rental: Many sellers are opting to sell now to take advantage of the market, and are moving to either short or long-term rentals. Some of the short-term rentals are also furnished, which allows sellers to pack up everything and leave it until they find their next home. Others are opting for longer year-long leases and moving in and settling while they look for something new. These options also give you access to your funds, which is great for your next purchase.
Bridge loan: Compass offers a bridge loan program that offers qualifying sellers a loan on their purchase, and then paying back the loan at closing of their current home. This is a great option for a busy market like we are in where home sale contingencies will weaken an offer.
As you can see, there are a number of ways we can help make this transition work for you and your family. Please give me a call if you would like to discuss further. Every situation is different, so our conversation may spark even more ideas and options.
