How to Buy & Sell in a Seller’s Market

Today, I want to talk about “What to do if you need to sell your home before you can buy your next one?”

It’s a seller’s market, most of these properties that are coming on, it’s a low inventory, and they’re getting multiple offers. As a buyer, if you have a contingency to sell your home, it’s going to be very tough for you to compete, like that is just straight facts.

What can you do? Sometimes if your home is already on the market, and you’ve removed a lot of the contingencies, like you’re past the inspection and appraisal period, then you might have a chance, but that’s far into the process. We’ll see if we can remove the contingency to sell. That means, can you qualify for another home mortgage? Is your DTI low enough? Is your income high enough? Do you have enough money saved for your down payment that you can purchase the next property without the contingency?

If you do not or cannot, let’s look at how much equity you have in your current home. Perhaps you would qualify for a home equity loan, or a short-term BRIDGE LOAN. I can introduce you to Compass Bridge which is a 0% short-term loan. In that way, you can use that money to purchase your next property and not have it be contingent in the sale of your home. Once your home sells, you pay that off.

 The other option is, sell your home. Put in on the market, get it under contract and find a rental or go live with family. In that way, you can close on your home. You don’t have to take out a loan, and you can take the proceeds. While you’re in your interim housing, you can search for your next property and take your time.  That’s the other option. Although, it is a lot harder in terms of logistics, if you have a large family or you have pets because you will have to move twice. Things to think about.

Another option is, when you list your home to any of your potential buyer, you can say that you want a certain length of closing. By the end of the closing, you’re going to need a use of occupancy agreement, which is essentially, a RENT BACK. So, you would close on the property, you will no longer be the homeowner of your home, but you would have in place, an agreement that you could rent back the house for however long you stipulate. It could be 30, 60, 90 days, as long as the buyer of your home is in agreement to it. So that is an option, in that way you can close on your home, take the proceeds, not have to move, rent back your house, and look for your next property. And it wouldn’t be contingent in the sale of your home because it is already done.

 Those are just a couple of options. There’s a lot of ways to do this, it all depends on your situation and the particulars of the area that you’re in and the area that you want to move to.