Here’s how to compete as a homebuyer who also has a home to sell.
If you’re thinking of selling your home and are concerned about being able to find another home to purchase, today I’ll share the three things you need to keep in mind to find success:
1. Asking price. Right now, a home’s asking price is almost like an auction asking price—it’s more or less the bottom end of the price range in which the house will likely sell. That’s not always the case, but to be safe, make sure you’re looking for homes within your means. If you qualify to buy a $500,000 home, for example, don’t look for homes too much higher than that price, as that home might sell for $550,000 or more.
“To guarantee the purchase of your next home, try offering more than the appraised value.”
2. Don’t be afraid to give the seller appraisal insurance. Appraisers took a huge hit in 2009 and 2010 when the housing market collapsed, meaning that they’re now pretty tight with their appraisals. If your neighbor’s house sold six months ago, that sale may not tell you what your home could be worth anymore. Even though there could be multiple people who are willing to pay, say, $50,000 more than what the neighbor’s house sold for, the appraisal might prevent that. Historically, the weight of the appraisal lays on the seller; the house has to appraise for whatever they plan to sell it for. To guarantee the purchase of your next home, try offering more than the appraised value.
3. Don’t make your sale contingent. If you’re trying to buy a home, you cannot make the purchase contingent on the sale of your current home; our market simply won’t allow for that. In light of this, we’ve been helping people make plans to get through; for example, we have rental properties that we allow our clients to stay in so they can sell their house and buy their next one without a contingency. Alternatively, you could find a rental property yourself to stay in while you buy and sell, or we could just buy your house from you. Few people want to move twice, but it might not be a bad idea to live in a rental in the area you’re looking to buy in so that you can see if you like that part of town or not.
No matter how hard it is to be a buyer in this market, we are 100% ready to help you through the process. If you have any questions about navigating a home purchase or sale, feel free to reach out to us. We’d love to speak with you.