Critical Steps: Selling & Buying Simultaneously in Nearby Markets
I’m often asked about the art of buying and selling a home at the same time. It’s a very common situation but the strategy can vary widely. Successful transitions require a holistic approach, as the unique needs of a family, conditions of the local housing market and who is working on behalf of the homeowner to advocate, negotiate the terms and close the deal must be considered. Even with representation, I have seen some of the most vital information easily overlooked by less-experienced Realtors which, in the end, can cost families a whole lot of money, time and grief.
The primary goal for my Team and I is to maximize results on both transactions and spare our clients from the not-so-fun details that comes with this daunting task. To do this, we first take a look at current market conditions and assess the bearing it will have on their buy/sell/move decisions. For instance, there are currently 252 homes for sale in our city including condos and 2-bedroom listings. This tells us that we’re in a seller’s market because the number of homes for sale is much lower than the number of homes that were available one year ago. The Median Sold Price (MSP) last month was $425k with a $266 median price/sqft. As list prices cover too broad a range to be of much help ($65k to $7,300,000, to be exact), we instead analyze the more critical and salient statistics, such as the year-over-year comparisons. MSP in 2018 was $406,000, which shows us a healthy appreciation of $19,000 or a 5% rise/yr. This may sound like great news for home sellers but what’s good for the goose isn’t always so good for the gander.
Next, my team and I spend time getting to know our clients. As I studied my way through exhaustive courses to earn Certification as a Real Estate Expert and have since worked with hundreds of families of all shapes and sizes and needs, I learned the critical importance of determining goals and creating a strategy. Timing of the transactions is the major part of strategy. Although selling before buying is the most financially secure choice, it can raise a lot of logistical concerns. Where will you live before you find, buy and close a new home? Where will you store all your things in the interim that you don’t want (or can’t fit) inside of your rental?
If you land the right buyers, they may agree to a rent-back deal. In this arrangement, after the previous owners close the sale they would continue living in the home and paying rent until they find and purchase another home. Since this requires several extra steps (and lots of paperwork to maintain accountability on both ends of the agreement), many choose to sell a home after they buy. This may seem easier but it can also be very tricky and maytake some fancy finagling.
Don’t care for either of those options? We understand life doesn’t stop when families decide to move and, for that, the ‘one step at a time’ approach does not work for most. The majority of families that my team and I work with prefer to buy and sell at the same time. Although timing can become tricky and negotiations convoluted, with a team of Real Estate Experts in your corner, it can be done.
Selling high and quickly is always our goal. In the current market, sellers are in a prime position but, when it comes time to buying a replacement home, that stiff competition can be a hard thing to face when you’re on the flipside of the equation. I have received countless calls from frantic home hunters who went rogue and find themselves unable to find a replacement, after they have already sold their home. Of course we are here to help during any stage of the buying and selling process but why wait? Buying and selling at the same time is a minefield and many seemingly insignificant details can result in very significant delays, major interruptions to your family’s work and school routines and even temporary displacement. So spare yourself and your family the needless stress by calling us before you make any Big Moves and ensure the whole process will go off without a hitch.
We’ll be happy to show you how we can help your specific situation.