Selling and Buying in a Seller’s Market
Have you thought about selling but worry about not being able to find a new place to live? If so, you are not alone. The number of active Central Ohio real estate listings is at its lowest point in over a decade. Homes are selling within days, if not hours, leaving sellers scrambling to make their next move. No need to fret, however. Here are practical tips for planning your transition.
Leverage Your Position as a Seller
Buyers are going to great lengths to win bidding wars in what is a red hot real estate market. While money is a driving factor, non-tangibles like possession can also be negotiated into your favor. A transaction involving financing takes four to six weeks to get to the closing table. That doesn’t mean, however, you can’t stretch that time frame. If you feel you might need it, build a buffer into the contract. You could close earlier if all parties are able to do so, but at least you buy time to navigate the process.
Find Temporary Housing
While not the favorite option, the easiest thing to do is stay somewhere temporarily while you search for your new home. This is of particular benefit if you need to sell before obtaining purchase financing. With bidding wars the norm rather than the exception, it’s nearly impossible to buy with a home sale contingency in your offer. Removing the current house as an obstacle clears your path forward.
Buy Before You Sell
Before choosing this route, consult with your lender to make sure can obtain financing without first selling your current home. You should also consult with a Realtor and trusted financial advisor to weigh your risks. Having these things being said, if you are in a desirable area, the home is priced right when the time comes and shows at least moderately well, chances are it will sell fast. Usually, your first mortgage payment will not be due for 6 weeks or more after closing. You might even be able to avoid making double mortgage payments if you play your cards right.
Give Yourself an Out
Include a contingency that the sale is contingent on buying another home. Typical clauses of this nature stipulate a number of days for you to enter into a purchase agreement. If you are unable to do so and are still within the allotted time, you can cancel the contract. Time is of the essence, so be sure to mind your days carefully.