How To Move into Your Next House in a Competitive Real Estate Market
Once upon a time, you would look for and buy your next home before you had to sell your current home. But with the current market, that strategy has become more of a luxury than the norm. Gone are the days where you could put an offer in on a new house with a contingency for the sale of your existing home. Which makes moving from one home into the next a bit more complicated.
Buying the Next House
One of the biggest reasons it’s difficult to purchase your next home without selling first is finances. The average home price in Redwood City these days is $2M. When you’re money is tied up in your existing home, it can be harder to come up with a 20% down payment, and to qualify for a new loan. If you’re buying another home in the area, you’ll also need to write a competitive offer, which means waiving most, if not all, contingencies for the purchase of the new home.
Ways to Transition
Don’t be discouraged though! If you’re ready to move, there are ways to make it happen. Working with a good real estate agent, that has a strong network in the area, will be a huge help in navigating this transition. Here are some strategies that you can use to make the move:
Ask the new buyers for a rent back on your existing home. This is written into the purchase contract to give you additional time after escrow closes before you need to move. You can use the timeframe between escrow and moving to find your next home.
You could work with your real estate agent to try and find a buyer off-market that will be ready to purchase when you find your next home.
If you do need to move into interim housing, try to find an Airbnb type rental that will give you flexible lease terms, so you’re not locked into a year-long lease.
READY TO MAKE A MOVE?
I would love to work with you on buying or selling your home. Email me or call me at (650) 704-8883 with any real estate questions. Or schedule a time with me for coffee and a free consultation.