One of the TOP concerns I hear from sellers, and rightfully so, that will sometimes give them pause when considering whether or not they should put their home on the market given the lack of inventory many of the buyers are now struggling with. Where do I go once my home sells?” Great question! Some sellers may have it all thought out and have a plan already in place. 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 sells, 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 the reality is, most sellers will fall into the category of having to sell their existing home to purchase their new home. This sometimes can feel a little overwhelming. 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. This option, if possible, not only gives you the gift of time to search for the “perfect home” (not feeling pressed to settle for a home you might not have chosen otherwise.) It also allows you to save additional money to put down towards your new home purchase, while making you a more appealing and qualified buyer in the eyes of the seller.
Option three – If the buyer has the time to wait on their move … have an agreement drafted between the buyer and seller which would allow you (the seller) to rent-back to (the buyer) after the home closes. This agreement would be for a certain timeframe agreeable by both parties. This strategy will enable you to close on your current home, giving you the cash out equity needed to put down on your new home purchase. This could potentially put you at the TOP of the list when seller is choosing which offer to accept when in a multiple offer situation. This strategy makes you a more appealing buyer in the eyes of the seller since your new home purchase will not be contingent upon your current home sale. This strategy will also allow the buyer to secure the home they wish to purchase while getting ahead of the already rising (but still very low) interest rates. It is a win-win-win for both buyer and seller, but certainly a strategy that may not work for everyone. Should you choose this option, it would be my recommendation to consult with your attorney, so you are informed from their legal perspective.
Option four – another 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. This option will give the seller more time to locate their next home, so they don’t find themselves moving twice. While this is the best and easiest option for the seller, there needs to be a clear understanding of what that time means to both buyer and seller should the date stretch out longer than anticipated. 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 may not always be about the $$’s, but in some cases the terms will be just as important and valuable to a seller.
As your Realtor, we would discuss your specific real estate goals, and formulate a plan to help you achieve those goals. We would discuss , the pros and cons on any or all of the above options should a “Plan B” need to be put in place that will enable you to literally move forward with your next home purchase.
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