If you own your home there’s a good chance you could sell it for considerably more money than you owe. That’s the way it’s SUPPOSED to work! But then you’ll suddenly be buying a home in a market that’s particularly challenging for buyers.
The truth is Kern Real Estate is helping buyers successfully navigate this challenge every day. As we’ve worked with clients through this transition we’ve developed, and continue to refine a set of strategies and talking points to ensure our clients’ success in both selling and buying and what I’ll call the “Plansition”. Here are a few examples of strategies we discuss with clients to help them be more competitive purchasing after they’ve sold their home. With some forethought a transitional seller/buyer can put a few safety stops within the process and use their equity position for their next home.
Buy Some Time and Rent for a While – When you’re selling your home you won’t want to make decisions about the purchase your new one under pressure. It may be worthwhile to line up a rental to live in between the sale of your home and purchase of a new one. You’ll likely have some equity from your sale, and with the right budgeting this may be a good option. You may also be able to secure an apartment with a smaller payment and rev up your down payment amount for the purchase of a new home.
Seller Leaseback Option – When you list your home for sale you can include selling terms within the MLS to notify any potential buyers that you’ll need a period of time to find a new home after closing. It’s entirely possible to negotiate a lease allowing you to rent your house back from the buyer while you use that equity to purchase a new home. A competitive buyer pool gives more power to the seller in the negotiation so prospective buyers are more willing to tolerate this kind of ask.
Secure a New Home as a Condition of Sale – When negotiating a sale it is possible to include a condition where you, the seller, must have time to find a new home prior to closing the sale of your home. These can be a little tricky but motivated buyers can often hold out on closing for a time.
Helping clients with their purchase is the next big step. Here are a few talking points we call “Home Buyer Power Tools” to consider after you’ve found a buyer for your current home.