How is the market? The new rules for buying and selling a home – the Willits News
Right now, people who want to sell their current home and buy another find themselves in a bit of embarrassment. The market is hot and residential properties are selling like hotcakes, so sellers are understandably eager to put their property on the market. However, what do they do if their house sells and they haven’t found a replacement? As is often the case in life, options have their pros and cons.
It’s important to remember that while the current housing market is very hot, it could start to cool by this afternoon. It’s just the nature of markets. So if you can take advantage of the current market, be aware that it may be a limited time offer. Plus, whichever option you choose, you could face increased property taxes even if you downsize. With these truths in mind, here are your options for buying and selling in this bustling market.
Option 1: Emergency sale
You can accept an offer to buy your home with a contingency that says you won’t sell until you find a replacement home. The advantage is that you can use the income from the sale of your current home as a down payment on your next home, and you will only have one house payment at a time. The downside is that buyers may not be as interested in buying under these circumstances, meaning they might offer a lower purchase price or simply abandon the deal when they find a seller willing to hand over the keys. easier.
Option 2: Rent Back
Another option would be to allow the sale and then rent your home to buyers (who are now the owners) until you find another property that meets your needs. The advantage is that buyers benefit from a secure transaction, allowing you to get maximum dollars for your property. The downside is that you no longer own a property in a growing market. Prices may continue to rise during your research period, so the profitability of the proceeds from the sale of your home may decline over time. Plus, eventually, buyers will actually want to move into their new home.
Option 3: Rent elsewhere
Similar to Option 2, if you sell your house and rent a different house for a while, you benefit from selling your house in a hot market; however, in addition to the disadvantages mentioned above, you now have to find a rental, which is no small feat, and you will have to pay to move twice (once from the house you owned, and once from rental in your new home). Just to let you know, Selzer Property Management, one of the largest property management companies, currently has no vacancies.
Option 4: Couch Surf and / or House Sit
Rather than selling your home and renting it out to an unknown third party, you may want to consider requiring your family or friends to stay with them or keep the home until you find a replacement home. Imagine you’re in your 20s again and staying in someone’s spare bedroom isn’t a big deal to you or them. The upside is that you have a place to stay while you search for a new home without a hefty price tag or a deadline to move out. The downside is that your relationship could get strained.
Option 5: Buy before you sell
While I understand this is not always feasible, the best idea may be to purchase your replacement home before selling your current home. If you can afford a down payment and double monthly payment, buying the replacement home first alleviates many of the challenges mentioned above. The benefits of buying before you sell include having to move only once, finding a new home before prices rise, and not having to include a contingency in the sale contract. your current home. The disadvantages are mainly financial: owning two houses is expensive. And there is no guarantee that your current home will sell for the price you expect. Be sure to discuss prices with your real estate agent before buying a new home which depends on getting a certain price for your old one.
If you have any questions about property management or real estate, please contact me at [email protected] or call (707) 462-4000. If you have an idea for a future column, please share it with me and if I use it I’ll send you a $ 25 gift certificate to Schat’s Bakery. To view previous articles, visit www.selzerrealty.com and click on “How’s the Market”.
Dick Selzer is a real estate broker who has worked in the field for over 45 years.