Back now, with our special ‘A Great Time to Sell!’ All about how you can take advantage of this unique market, in which sellers hold pretty much all the cards.
Why just pretty much? I mean, with property values rising, and buyer demand sky high – why aren’t sellers holding ALL the cards?
Well, just one thing. When most sellers sell, they turn right around – and buy. And in this market, that gets complicated!
Because in red hot markets, all across America, there aren’t many homes for sale. So, with all that demand, your current house might sell very quickly. But, finding your next house? That could take much longer.
So what’s going to happen? If you sell one house and don’t have your next one yet – will you end up in a hotel?
Well, don’t worry. Because chances are, your REALTOR® has done deals like this many many times. And they’ll know exactly how to organize the two transactions, so that you go right from one house into the next.
First, they’ll look at the data. They’ll examine the sales records to see exactly how long it takes to sell a house in your market. In some red-hot areas, that might be days! In other markets, it might take longer.
Next, they’ll look at your financial situation. Can you afford to buy your next house, before you sell the one you’re in? Well, if so, you have a lot more flexibility. And you can go ahead and get that other place, and then sell your current house later.
But most people need the profits from the house they’re selling, for the down payment on their next place. And if that’s you? There are still plenty of winning strategies out there.
One – put your current home up for sale first….and when you get an offer, you include a “home of choice” contingency. That tells the buyers that you will sell them your home, if you find another one. In a seller’s market, in which buyers are dying to find a house, they might be delighted to get your place under contract, even with that contingency. So ask your REALTOR® whether a ‘home of choice’ contingency would work in your market.
Another strategy is to do the opposite….start house-hunting first, and hold off on putting your house up for sale.
That’s a solid strategy too. Because you’ll be doing all sorts of legwork ahead of time. You can see which neighborhoods you like…you can learn about the amenities, the commute, the home styles – all of that, before your ‘for sale’ sign goes up.
And if you find the house you want? In that case, when you write your offer you might ask for an extended closing period…which could give you more time to sell your current house. That might work.
But — try to avoid putting including a ‘sale of home contingency,’ in your offer. That says “we will buy your house only if we sell ours.” That won’t really fly in a red-hot market. Because sellers would probably just choose another offer, instead of yours. No, to win in a competitive market your offer will have to be extremely clean.
Now, in a perfect world, you would get your current house AND your next house under contract, and they would close the same day! Wouldn’t that be nice? Well, it happens. But that, is a perfect scenario.
It could happen! But if it doesn’t, and you sell your current house before you find your next one? Well, don’t worry about it. You wouldn’t be the only ones facing that. REALTORS® all across the country tell me that’s happening a lot.
And if it does, you can just put your stuff in storage, and move into a hotel for a while.
In a way, it kind of takes the pressure off! Because, after all, since you just sold one house, you’ll have all that money in the bank. And, you can take your time house hunting. No more pressure! You can look for your next house at a more relaxed pace. And that’s all good.
Oh – and there’s one more thing. One more big benefit to selling your current house first, and then staying in a hotel while you look for your next home.