"I Want to Sell But What if I Can't Find a New Home?"
Many clients of ours would love to cash in their equity right now but are afraid of being left out in the cold when it comes to finding another home. There are options to consider which can make finding another home less stressful. Here are 4 great tips for clients to navigate this current market and find a great replacement home!
Negotiate a longer close on the property you are selling: Due to high demand, buyers are willing to be flexible on nearly every contract point, including a longer close. Negotiate additional weeks or even months in some cases to find your replacement home.
Close and lease back: Another option is closing on your current home and then leasing back from the buyers. This way you have the funds from your sale available to make your next purchase and you don’t have to include a home sale contingency (which would weaken your offer!). In this market, you can often negotiate a lease for free or for a minimal amount.
Find a short or long-term rental: Many sellers are opting to sell now to take advantage of the market, and are moving to either short or long-term rentals. Some of the short-term rentals are also furnished, which allows sellers to pack up everything and leave it until they find their next home. Others are opting for longer year-long leases and moving in and settling while they look for something new. These options also give you access to your funds, which is great for your next purchase.
Bridge loan: A bridge loan program offers qualifying sellers a loan on their purchase, and then paying back the loan at closing of their current home. A bridge loan is a form of short-term financing that can serve as a source of funding and capital until a person or company secures permanent financing or removes an existing debt obligation. Bridge loans (also known as swing loans) are typically short-term in nature, lasting on average from 6 months up to 1 year.
As you can see, there are a number of ways we can help make this transition work for you and your family. Please give us a call if you would like to discuss further.