One of the TOP concerns for sellers that will give them pause when considering whether they should put their home on the market is … “Where do I go once my home sells?” Some sellers may have it all thought out and have a plan. Perhaps they are snowbirds and live in their Florida home during the winter months for example, and now they have made the decision that when their current homes sell’s, they will make their Florida home their forever home. Or perhaps they are combining households, with their significant other – and will no longer need two homes. But most sellers will fall into the category of having to sell their existing home to purchase their new home. Here are a few options sellers can consider to make their move from their current home to their new home possible.
Option one – have a short-term rental in place in the event you have not located the home you wish to purchase after your current home sells.
Option two – plan to temporarily move in with family members while moving your belongings in storage until which time you secure a new home.
Option three – If the buyer has the time to wait on their move … have an agreement drafted between the buyer and seller to allow you (the seller) to rent-back to (the buyer) after the home closes for a certain timeframe that would be agreeable to both parties. This strategy will enable you to close on your current home, while looking to secure your next home purchase. This will help you to be a more appealing buyer (not contingent upon your home selling/possible equity in hand) which could aid in having the seller accept your offer over another which can expedite your next home purchase. This strategy will also allow the buyer to secure the home they wish to purchase while securing a lower interest rate and combatting the ever-increasing home prices. It’s a win-win-win for both buyer and seller, but certainly a strategy that may not work for everyone.
Option four – another more popular option would be for the seller to choose a buyer who is willing and able to give the seller extra time before closing on their current property by extending the closing date out, for an agreed upon timeframe of course, for the seller to locate their next home. This is the best and easiest option for the seller, so they don’t find themselves once again moving more than one time. In some cases, and especially in this market, sellers are receiving multiple offers – if the seller has not secured another property prior to their sale, they may be more likely to accept an offer where the buyer will give them that gift of time as part of the contract terms. There are many parts of a buyers offer that can be enticing to the seller, and it is not always about the $$’s, but in some cases the terms will be just as valuable to a seller. Having these conversations with your Realtor prior to putting your home on the market, can help ease the stress of having a possible plan in place once an offer/s has been received.