By: Kelly Gibbs
This seems to be a question many potential sellers here in Cincinnati are asking themselves right now. Interest rates are so low and housing inventory across the tri-state is too, which makes it a great time to be a seller, especially when buyer demand is as strong as it is today! But what’s a seller to do when they too need to find a house to buy? Well, I know one thing for certain, the worst thing you can do is to do nothing. Something is going to have to give in order for the real estate market to sustain. If no one puts their house up for sale then there won’t be anything to buy either…see how that works. The best thing you can do is plan ahead and be prepared...
Good news… you have OPTIONS!
1. Buy and then Sell. There are several ways this can be done. Maybe you already have enough set aside for your down payment on the new house and reserves for carrying both mortgages, if not then there are bridge loan products and home equity lines that can be applied for. This could make things easier on you logistically, but you also need to consider the financial implications it can have. After discussing this option with your Realtor and lender you will have a more clear idea as to if this is the path you should take.
2. Sell and Buy doing a back to back closing. With the help and coordination of an experienced Realtor, you may be able to sell your current home and close on your next home on the same day. However, this is no easy feat. You need to keep in mind that a same-day closing will require perfect timing on three different timelines—yours, your buyer’s, and your seller’s.
3. Sell and rent back. As a seller in the current market, you have the power to call some shots that will make timing your move easier. With a rent-back agreement, the buyer of your home agrees to allow you to stay in your home for a specified period of time (45 to 60 days) after the sale is final. In exchange, you allow for a lower selling price or rent paid to the buyers. This can relieve some of the pressure of finding a temporary place to stay and give you additional time to house hunt. This might sound like a big ask, but buyers in a competitive market are often willing to be flexible with sellers if it means their offer is the one that gets accepted. In some situations this could be helpful to your buyer as well.
4. Sell and negotiate a longer closing period. Once again this might sound like a big ask, but I REPEAT…buyers in a competitive market are often willing to be flexible with sellers if it means their offer is the one that gets accepted. In some situations this could be helpful to your buyer as well.
5. Sell and stay in temporary housing- short term rental or crash with family. You may need to find a temporary place to stay and rent a storage unit to store your stuff. This option is not the end of the world. Yes, I understand that this may not be ideal, but there is a price for inconvenience. Are you getting top dollar for the house you are selling? Maybe even more than you ever thought you would get? Attractive terms that benefit you the seller? If you answered yes, or you think that would be the case in your situation, then ask yourself this. If temporary housing was your only option after selling, would it still be worth it?
6. Create and look for off-market opportunities. Don’t just wait for homes to hit the CincyMLS. Are you working with an agent that is doing everything they can to find you a home? Today’s agent should be networking with other agents, reaching out to owners in the neighborhoods you are honed in on, and thinking outside the box to generate opportunities potentially before they hit the market.
If there’s a will, there’s a way…
I get it, I have been where you are. Not just with clients, but my family and I had to navigate all the what if’s of buying and selling in this market recently as well. Guess what? We survived and everything worked out! I will admit that managing all the moving parts of buying a new home and selling your old home is no walk in the park. The great news is that you don’t have to deal with the stress of doing it on your own! I’d be happy to meet with you (in person or via ZOOM) to learn more about your specific situation, what you want in your next home, what your current home is worth, and what’s possible given both of those factors. Not ready to meet in person? That's OK too! I created a guide that can help you get started in the meantime, click here to get your copy. I have a proven process for profitably selling your current home, so you can move right into your next home without upending your life OR budget. I have helped many clients through this same process and I’m excited to help you too!
It all starts with an initial meeting between us to get the big picture clearer. I like to hear from my clients who want to buy and sell at the same time several months before they are ready to start looking at homes, so if you are even just thinking about things, reach out to me! Don’t worry, I promise I will not try to convince you to move any faster than you want and together we will figure out a timeline and which approach makes the most sense for your life and goals. I can’t wait to hear from you!
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