The Low Inventory Dilemma.
While a quick sale is a reason to celebrate, the challenge comes when it happens before you can find a new home.
If you’re having a hard time finding a new home due to the limited inventory we’re seeing, there are options!
At first, it sounds like a great problem to have! Your home sold after only days on the market, with multiple offers, for well over your list price. While a quick sale is a reason to celebrate, the challenge comes when it happens before you've found a new place to call home.
This has become a common phenomenon in our current market, which remains HOT due to the continued limited inventory that started in April 2020. Though inventory may increase in the spring selling season, there’s a conundrum. For every home listed, another home has to be bought. Until inventory outpaces demand, securing your next home might likely take a little longer than anticipated. I can help you plan ahead and find success. Here are a few of my strategies:
Ask about a contingency clause.
A home sale contingency is a clause added by your Realtor to your contract that essentially states that you won’t finalize your home's sale until you find a new home OR allows you to stay in your home after the sale until you close on your new home. While you might think, "who would agree to that?!" with such limited inventory buyers are going to greater lengths to secure the purchase of a home. All of these options we will discuss together before listing to come up with a plan that will work the best for you.
Consider a bridge loan.
One of the reasons sellers panic about being in-between homes is dipping into their savings to cover the unanticipated living expenses, especially as the sale is pending on their current place. A bridge loan is a short-term loan that can cover you in this instance. The downside is that these loans often have higher interest rates and quicker repayment periods. I am happy to put you in contact with my trusted lending partners to see if this option might work for you.
Look for a “vacation” rental or corporate housing.
Whether you choose to go to the beach or the mountains or even have a "staycation" close to home. Services like "Airbnb" or corporate rentals make great options for housing during the in between. Both vacation rentals and corporate housing tend to be furnished. You also don't have to worry about starting utilities for a hopefully short duration. Put all your belongings in a monthly storage unit and enjoy the time as a vacation until you find the next place to call home.
Hire an agent with connections.
When it comes to finding and securing a new home in this market, sometimes, it comes down to having an agent who leverages their connections and knows how to target and locate off market properties in your wanted neighborhoods. Don't hire an agent who just waits around for a house to come on the market. I dive into my database, agent relationships and start neighborhood campaigns to find the right home for you! Once a property is located, I will have a conversation with the owner and find out more about their home. If it is a potential match for you, I will set up an appointment for you to view the home. The goal is for you to find a home that you love off market with no other competition in this competitive seller's market!
While it can be anxiety provoking to sell you home in this climate, do not let fear make you miss out on taking advantage of this market! With a few creative solutions we can make the process a great success for you and your family.