This is the perfect time to make a change. While we are still in a seller’s market, allowing you to get a great price for your home… historically low interest rates make it an ideal time to purchase as well.
Whether you have outgrown your condo, and you are ready for that home with a yard, or the kids have grown up and moved out and you would like a lower maintenance property, this is the ideal time to sell and buy.
There are several things to think about when selling and purchasing concurrently.
Allow yourself more time to locate your future purchase. There are two ways that this can be accomplished. Either by selling your home, contingent on you finding your Home of Choice or by negotiating a rent back.
By listing your home contingent on your finding a “Home of Choice (HOC),” this is a bit less appealing to a potential buyer. As a buyer, wouldn’t you rather know that if your offer is accepted, you will be purchasing the home you fell in love with? Would you pay a bit more for a more solid escrow? The goal is to maximize the value of your property and to have as much market exposure as possible. Many buyers will not look at a home which is contingent on HOC due to the uncertainty.
Perhaps even more important is that most sellers will not consider an offer from a buyer that is contingent on the sale of their home, especially if you are competing with non-contingent offers.
By selling your home, and renting it back for up to three months (or whatever you and your agent negotiate), your offer to purchase will no longer be contingent upon the sale of your property, and your offer will be more appealing to the seller.
If you are uncomfortable with a rent back, and prefer to sell contingent on HOC, try to negotiate a longer period before you give up possession. Escrows often close late. Allow yourself a “pad” of at least five business days so that you do not have to give up possession before you get the keys to your new home. This will allow for a much less stressful experience. Communicate with your agent, and make sure that they understand your questions and concerns.
Now is the time to make your move!
JLM Properties Inc. is located at 27201 Tourney Road, Suite 200E in Valencia. For more information, please call 661-510-2112 and visit www.JLMPropertiesInc.com.