The real estate market has been strong the last few years and it has been a whirlwind in selling, but there are a few things to consider when selling. There are many things that are not absolute that you should take into consideration and one is if you should list your home prior to buying another home.
Should you find the right house to buy now and then list my home? That can bring risks. You love this house you or your agent has found and want to buy it now, but you must sell your home first in order to buy. You can always list your home and have your agent write a contingency offer and pray it all works out in your favor. But realistically, with todays’ market, there are many buyers out there that are also are looking along with you. We are in a sellers’ market and with inventory so low, if a property is priced correctly, it won’t be on the market long. The saturation rate of homes sold in the Lakes Region is 3-4 months or even less with some neighborhood homes.
For example, this past weekend I attended an open house and for a two-hour period, there were nearly 30 families that attended and at least 26 were serious buyers. The house is under contract now.
There are other possibilities you can consider. You can list your home at the same time while you are looking to purchase a new home and hopefully it goes pending quickly, and you can find your next home without a contingency- that would be the best scenario. If you have savings that can be used to obtain a short-term rental or to make two mortgage payments until your home gets sold, that could work as well. You could get a HELOC (Home Equity Line of Credit) or a bridge loan until closing, but that is not the ideal situation.
If you sell your home first, that’s great news. Of course, that is the ideal situation, but what happens if you can’t find your dream home? You could do a rent back if the buyer didn’t plan to move in immediately, or you can rent for a short time till you find the right one. It can be a frustration for sure, but this is where your agent should step up to the plate and do his/ her due diligence and find your dream home.
If you sell your home, you’ll have the cash to buy a new home, and won’t feel rushed. But, every option has an upside and a downside; talk to an agent to figure out what’s best for your situation. He/she is your best resource for this and will help guide you through these tough situations.
Richie Vraux is a Broker/ Realtor with Better Homes and Gardens-The Masiello Group both Windham and Gorham office and also in partnership with Maine’s Premier Team. Contact Richie for your Real Estate advice at 207-317-1297.