So you’ve decided to list your home knowing the leverage you now have as a seller is the most robust it has ever been (and may ever be) in your lifetime. If you’ve spent a little bit of time and money making your house move in ready, you’re practically guaranteed to sell it within days of it hitting the market.
But there’s a catch. As a seller you hold all the cards. As a buyer, things are a little more challenging. If you haven’t gone under contract on your next home before selling your current one, what do you do? In the past, short term apartment rentals may have been an option, but with tight housing inventory across the board, it’s time to get creative.
- If you’re single, your options may be easier. One of our clients sold his home in Buckhead in a couple of days and hadn’t decided where he even wanted to buy yet. He was able to stay with a number of friends for a while as we navigated his home search through different areas of town to ultimately find him the perfect fit.
- If you’re married or have kids, family may be an option if they live in town. What better time to have an extended stay with Nana and PawPaw if they have the room? Or maybe siblings who would be willing to let you share their space for a bit.
- Facebook is a great resource for reaching out and asking for recommendations of short-term housing options. Be sure to ask on both your personal page as well as any groups you may be a part of as well as Facebook marketplace.
- Another possible resource is Air BnB. There are some that are available for longer terms and you may even be able to negotiate the price down due to the extended time period you will require.
- Extended stay suites may also offer an alternative. There are some that are quite nice and the ability to pay month-to-month will provide you the luxury of time as you search without feeling like you’re crowding anyone else’s personal space or fear of being asked to vacate.
Although affording you the opportunity to not be rushed into purchasing your next home, all of the above options will require you to move twice essentially. And while there may be room for your furniture and belongings with friends or family, there won’t be with the other choices in which case you will either rent something like PODS or a short term storage facility unit.
But what if the above solutions can’t or won’t work for you? Don’t despair, your real estate agent now gets to step in and do some serious negotiating on your behalf! In this market with a good home, you will have multiple offers and thus leverage to ask for what YOU want and need.
- Include the leasebackas a part of the Purchase and Sale Agreement (also known as a sale-leaseback, rent-back or post-closing possession agreement), in which you close the home sale like usual and then become the purchaser’s temporary tenant for a period after closing. Your rent covers the cost of their mortgage payment. This scenario requires a purchaser willing to work with you, but in today’s market this is becoming more common to win the deal.
- Include in the special stipulations a flexible closing date which will allow you a longer period of time to close in order for you to find a home. This can be anywhere from 60-90 days or longer depending on your buyer’s situation. We were working with a client who lost out to another buyer not because they offered more money, but because they were extremely flexible on their closing date which allowed the seller to find their new place first.
In normal markets, the above options wouldn’t be as readily available. But we are most certainly NOT in a normal market. The great thing about these is they allow you to look for your new residence from the comfort of your former home. No shacking up with friends, depending on in-laws, storage facility bills or double moving charges.
Hopefully you feel more confident in listing your home as you now have multiple options for doing so without feeling rushed to buy your next one. Happy selling!!
By Holly A. Morris, Realtor
The Meridian Real Estate Group