Stories of a tight housing market are all around us: low listing inventory, homes selling at a feverish pace, multiple offers leading to sales over list price. Today’s market surely presents some unique challenges.
Generally, the current message in residential real estate is, “Now is a great time to sell” The reality is that in conjunction with a successful sale, many sellers will need a new place to live. Sellers are saying to themselves, “Sure we can sell, but can we buy successfully?”
As with any market, it’s important to have a professional in your corner with helpful strategies to meet your real estate goals. Here are ideas we employ to help sellers as they get ready to go!
If you sell your home before you make a purchase, strategies for easing the process include:
- Listing contingent upon property availability
- Shorter term listings
- Extended possession after closing
- Extending the sale to closing period
- Delaying offer review to ensure market exposure
And for the subsequent purchase:
- Shortening the inspection period
- Offering a nonrefundable earnest money deposit
- Locating non-MLS inventory (for sale by owner, or soon to be listed)
- Utilizing contingent offers
If your home does sell quickly and some time between homes becomes necessary, there are ways to figure out short-term options for your housing. Short-term rentals (Airbnb or VRBO), long-term rentals, extended stay hotels, moving in with family or friends who have a finished basement or garage apartment, using storage facilities for belongings you don’t need daily and even “glamping” during the warmer months can all help bridge any gap in your move to a new home.
Buying your next home first, before you list, also can be ideal, especially with the reassurance that your home can sell relatively quickly in today’s market. This option, with the right financial strategies, can be a winner. Here are some financial strategies you can employ if you buy before you list:
- Obtain a bridge loan
- Utilize current home equity
- Seek a short-term loan
- Secure an option to purchase
- Re-cast your loan upon the event of your sale
Finally, count on your realtor, especially during these low inventory times. Look to a knowledgeable and motivated real estate professional to do some out-of-the-box fieldwork to find your dream home. Ways that agents are helping identify off-MLS homes these days include canvassing neighborhoods, engaging their personal business network, working with builders and full utilization of social media and electronic campaigns to find potential sellers who may be on the fence about listing.
Don’t let the current buzz about a tight market hold you back from taking advantage of a great time to make a move. Solid strategies and planning do make a difference and having a knowledgeable realtor on your side will allow you to work through good options for finding success in any market.