How do Sellers Sell With Nowhere to Go?
A couple of weeks ago, we cautioned against taking the headlines at face value when they say that the housing market is slowing. We dug deeper to find out that the primary reason it is slowing is because of the low inventory. People don't have a lot of choices and potential sellers are reluctant to sell if they have no good choices to buy. It's a Catch-22.
Our friends at Redfin address this problem head on in their blog. They offer advice to sellers to make the move in this type of market and their number one piece of advice is to take your time shopping for your next home first and consider the following strategies:
- If you can afford a new down payment and two mortgages for a short time, go ahead and buy first, and then sell. This is only wise if your market promises a speedy sale.
- Look into a HELOC or bridge loan to tide you over until you can sell and realize your equity.
- Put a contingency of sale in your offer but make it strong. Sellers have choices so you have to compete.
- Sell your house first but work out a lease back from the buyer to give you time to find your ideal home.
- If you have the means, consider keeping your current home and renting it.
- Sell but don't buy now. Move into a rental while you wait for more inventory to come onto the market.
Before making a decision on any of these strategies, consult your favorite REALTOR® to see which one she would recommend, if any. Every market is different and only your local professional will be able to explain yours to you.
If you are thinking of selling, give me a call and I can provide a no-obligation free market analysis on your home and even help you find your new one.