In today’s fast moving real estate market and with homes selling for more money than they have in the past, you may have thought about selling your home. But with limited the very limited inventory you are afraid that you will sell your home before find something else, leaving you homeless. This is a very common thought that a lot of seller’s are thinking and in my opinion missing out on the opportunity to sell at the top of the market. Here are 3 ways to sell your home without going homeless.
Negotiate The Closing Date
As a seller in this market you have more control than you may think. The average escrow process is around 30-45 days. As a seller that is on the verge of being homeless if you don’t find a home in that time, you may feel immense pressure and make the wrong purchase if your only allotted 30-45 days to do it. If you negotiate 60-90 days in the contract it’s more than likely that the buyer will accept these terms. And this will give you plenty of time to find your next home and make your move and if you accomplish this before the 60-90 days you can always move closing up and both parties win!
The most conventional contingency is when the buyer writes the offer contingent upon selling their current home before closing on their new home. We can also do this the other way! When you get an offer and can’t negotiate a longer closing date you can make the offer contingent upon you buying your next home. This means the new buyer will not close on your home until you are under contract and know you will close on your new home. Then you can overlap the closing dates, sell your home, move in to your new home in a weekend. Again, win, win for both buyer and seller.
Sell & Rent Back
If neither one of the previous tactics works you have another option. With this option you would accept the offer with a 30 day close with the agreement that when the new buyers close they will rent it back to you for an agreed upon amount of time in order for you to find a new home. This way you will collect the proceeds from the sale, the buyer gets to make a little money from renting it back to you and you can take the proceeds and the time to buy your next home.
With all of these options you would be able to take the equity you have in your home to put towards your new home. If none of those options sound like they will work for you then it may be a good time to look into getting a bridge loan. A bridge loan is a short-term loan that allows the borrower to use the equity in their current home for the down payment on the purchase of a new home. This way you have the time to find and buy your new home with out being rushed out of your current home and then you have usually about 12 months to get your home sold and refinance your new home to a long term loan.
If you would like more information about bridge loans or these creative ways of buying your next home while selling your current home, give Team Ringgold a call at (785) 256-0570