How Not to End Up Homeless After Selling a Home in a Sellers' Market
The competition for available homes on the market in the Greater Boston area (and across the country) has never been higher. What this means for lots of would-be sellers is that they're faced with the very real possibility of selling their current home without having found a new one. This is not a position anyone wants to be in, and luckily there are ways around it.
Because demand from homebuyers is so high, sellers are in an excellent position to dictate the terms they want. What many don't realize is that this goes beyond simply suggesting an offer that comes in at a great price. A good seller's agent will guide potential buyers to draft an offer that's both strong in price and terms that allow the sellers some time and flexibility in figuring out their next steps.
One strategy is to sell subject to sellers finding suitable housing. In a seller's market, it is MUCH better to ask buyers for this accommodation than vice versa. Making an offer on a new home subject to a home sale contingency is very likely to go nowhere in this type of market. However buyers, especially those who are currently renting or have flexibility in their closing timeline, are often very willing to move forward with a purchase knowing that it may take some time before closing for the sellers to get an offer accepted on a new home.
A second option that can be more appealing to buyers since it allows them to close and lock in an interest rate sooner is to request that they lease the house back to the sellers for a period of time after closing. While this does come with an eventual end date it can often give sellers 60-90 days between the offer and closing plus the agreed upon lease period which is often up to 60 days after closing. Having this 4-5 month cushion plus the advantage of having the proceeds from the sale in hand before closing on the new house can make a huge difference in having both the time and budget to close on the new home.
With careful planning and strategies like these it is entirely possible for homeowners to take advantage of high sale prices while minimizing the risk of not finding a new home. As with any major transaction, it is always important to discuss pros and cons with your agent before moving forward.