4 Seller Strategies for Selling & Buying in a Seller’s Market Seller’s #1 FEAR today is NOT BEING ABLE TO FIND A REPLACEMENT HOME! #1 – SELL FIRST THEN BUY – Most Sellers & Realtors Go-To Choice Most sellers need to do this because they don’t qualify for two loans and need their home equity for down payments on the next house. Bridge financing doesn’t really exist so many people need to sell first. Strong offer when buying, but must coordinate with buyers (possibly on both ends) Is problematic in this market because of low inventory – Can’t find something to buy! Very stressful for sellers & realtors. Limited time to shop. Start home search now! Occupy After Closing (Rent Back) option is great up to 90 days, if buyers can wait (loan locks, school, cannot rent or extend lease, etc) Simultaneous closes are very difficult to do. Should have same escrow if possible. Rental market is tight, so might need very temporary housing (ie, Residence Inn). Listing Agreement Private Remarks: Subject to Sellers finding suitable housing within xx days.
#2 – SELL THEN DON’T IMMEDIATELY BUY – Rent Low stress due to ability to wait for right home to buy. Locks in Today’s Sales Price while they wait. Ability to test living in a new area (ie: country to city, suburbs to city, city to country). Rental market is tight. Rental costs are high. Lease may be long or may need to be broken. Short term rentals may work – Residence Inn. This is important for those with a very specific home to buy. Can wait for the one. Stronger offer when buying, usually can close quickly
#3 – BUY FIRST – Not Contingent on Sale of Current Home Least stressful in terms of knowing where you are going and not being homeless Easier transition from home to home. Time to find the perfect house. Stronger offer when buying, usually can close quickly Could require two mortgages, there may be loan contingencies Inability in many cases to access equity from current home (however could do credit line must do before listing, could do loan that recasts) Higher costs (PITI x2), but great for people with money Can prepare house to sell while shopping & buying Think about staging requirements (maybe move out / move in phases, declutter into new house) Could even keep current house as rental (keep current owner occupy loan, although a rental)
4 Seller Strategies for Selling & Buying in a Seller’s Market Seller’s #1 FEAR today is NOT BEING ABLE TO FIND A REPLACEMENT HOME!
#4 – BUY FIRST – Contingent on Sale of Current Home Less stressful in terms of knowing where you are going and not being homeless. Many sellers will consider contingent offers since it gives them time to buy Maybe hard on sellers who need to sell quickly or desirable properties in this market. Better terms can make this more attractive. Seller can continue to market, find better offers (Bumpable). Disadvantage to buyer. Motivates your seller/buyer to get moving and have their house ready to go to market. Due diligence is required on the property that your buyer is selling. Must be priced right. Inspections could be required right away on the replacement property. Earnest $ is required.Usually requires simultaneous closing (unless occupancy after or before). Subject to closing is different than a contingent offer. Timelines and terms need to be carefully managed. Sale fail on replacement property is still an issue.