That’s right, how to stay in your own place and not be a short term renter. I’m talking about home sellers. Because in today’s market many homes sell fast. You might put your house on the market and get an offer that same day. If you like the offer and you take it, you’re headed to the closing table. But, do you already have your next house lined up? Because that could take a lot more time than you think. So there you are, you’ve sold one place and you don’t have another one under contract. It’s time to look into what, month-to-month renting, long term hotel stays, time to ask your friends if you can move in for a month, time to panic? I hope not, but there are ways to avoid that situation and it’s all about carefully planning every step so you don’t end up in that hotel.
First, talk with your REALTOR. They’ll know how long it takes to sell a house in your neighborhood. That’s good intel. They’ll also know how long it takes to buy a home. Talk to a REALTOR about where you plan to buy about whether there are enough homes for sell. If so, you can probably relax. If however, inventory is tight you need to get ready to buy right away. The first step is to get pre-approved for a mortgage on that next house, get that all lined up. Now in some markets your REALTOR can help you prepare an estimated net sheet on the house you’re selling. So you’ll have a pretty good idea on how much you can put down on the next place.
So get the mortgage on your next home lined up first. At the same time get your current house ready to sell. Have your REALTOR tell you what needs to be done to bring in the maximum profit in the minimum time. Get that place in tip top shape, already for the “For Sale” sign.
Then ask your REALTOR if you should go house hunting first or should you put up the For Sale first? Again, there’s no one answer for every market out there, but your REALTOR knows your market. They’ll give you advice based on the current market conditions and they can tell you whether it’s best to start looking first or to list your house first. Or maybe do both at the same time. But remember you’ll probably have more power as a seller than as a buyer. Now you can use that power to your advantage. For instance, if you list your home and you get a fast offer, you can specify that closing will be 45 to 60 days out. Hopefully, that will be enough time to get you into your next place. You can also ask for a home of choice contingency, in which you accept the buyers offer subject to finding your next house. If your market is red hot, that might work.
Now on the buyer’s side you will probably have less control. You might have to move faster and have fewer contingencies than you’re accustomed to. But, even though the seller holds most of the cards, they’ll probably be willing to work with you. As long as what you’re asking for doesn’t cost them money or time.
Again, the goal here is to sell one place and move into the next without moving into a hotel. But remember one thing, if you sell your current house for so much money that you’re willing to move out before you find another place – well, there are worse things than a month of room service.