Mortgage rates are much higher today than they were at the beginning of the year, and that’s had a clear impact on the housing market. As a result, the market is seeing a shift back
AFRAID OF SELLING AND BEING IN-BETWEEN HOMES?
Dated: May 19 2021
Buying a home and selling a home are equally stressful, but what about when you are trying to coordinate both at the same time? For every home listed, another home has to be bought, and our current market remains hot due to the continued limited inventory. Until inventory outpaces demand, securing your next home might take a little longer than anticipated. But being in-between homes is more common than you think, and I have a plan if it happens to you.
Selling Before Buying
Buying Before Selling
Buy With a Contingency to Sell
Sell With a Contingency to Buy
Or, you can do the opposite and put a clause in your contract that essentially states that you won't finalize your home's sale until you find a new home. Ordinarily, buyers find such clauses to be off-putting because it creates a lot of uncertainty in their own timelines. However, when demand is very strong like it is now, there may be a buyer out there who has a more flexible timeline for their move. (For instance, a family in the market for a home but doesn't want to move until the new school year starts). We'll discuss it together to see if a clause would make sense for you.
Look For a 'Vacation Rental' or Corporate Housing
While the seasonal vacation rental market is projected to pick up as travel rebounds following all that 2020 brought, these rentals weren't going as quickly as annual rentals. In other words, there are more options to be found, often at prices lower than they'd traditionally go for. Look out for deals for off-peak rentals especially. Another option is corporate housing since they typically offer more flexibility as you settle into your new area. Both vacation rentals and corporate housing tend to be furnished, so if your furniture is in storage until you're able to buy your new home, you'll be comfortable the whole time.
Consider a Bridge Loan
One of the reassons sellers panic about being in-between homes is dipping into their savings to cover the unanticipated living expenses, especially as the sale is pending on their current home. A bridge loan is a short-term loan that can cover you in this instance. (It can also add to your home purchasing power, in case that opens up more options to consider buying). The donwside is that these loans often have higher interest rates and quicker repayment periods. Do the math and read the fine print to see if this makes sense for your situation.
Consider your buyers and sellers carefully when trying to coordinate a sale and purchase within a short amount of time. The last thing you need is a seller or buyer who is displaying signs of being uncommitted to the deal. While no transaction is guaranteed until all the closing documents have been signed, when you need a purchase or sale to coincide with your schedule, you should carefully evaluate who you sign a contract with. A contract with contingencies on other deals going through, a lender expressing doubt about final financing approval, a low good faith deposit, buyers asking for unreasonable repairs or allowances, or sellers whose moving plans are questionable are red flags that your deal could fall apart.
When you're putting your home up for sale, it's easy to let anxiety take the wheel. The fear of selling your home before lining up your next home is one of those worries that commonly come up when the market is hot. However, it's also one with a few easy solutions -- depending on your unique situation, I may have even more creative ideas. You never know if such a scenario may be a blessing in disguise too. Just think, next year at this time, you may be sitting pretty in an affordable vacation rental in a fun destination, taking your time to find your dream home.
Let's talk about your options. If you're struggling to find your next home, but you're ready to sell your current home, let's talk about your unique situation. Just give me a call (or shoot me a text) at 702.805.4480 and we'll figure out a plan that will work best for you and your family.
I AM REDEFINING REAL ESTATE I believe that the vast majority of real estate professionals are underserving their clients and we need to do better. Helping people buy or sell real estate should not be....
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