If you are thinking about downsizing, one of the biggest conundrums in this market is often… if you sell can you find a new home in a timely fashion so you won’t be homeless or have to move multiple times? What many people are finding to be a smart strategy is buying their new home first and selling their current home afterwards.
If this strategy appeals to you, check with your lender and financial adviser to see if you can qualify financially to buy not contingent upon the sale of your current home so you have options.
With such a limited supply of homes for sale, get ready to buy as soon as a home that you like comes on the market. If you can afford to own two homes for several months, you could buy now when prices are softening and competition is not as intense… then you would have some time to get your current home ready to sell in the spring market to maximize your sale potential. Keep in mind that in this scenario you don’t have to move into your new home until you are ready… it doesn’t have to be right away.
That isn’t always the wisest move, however. If your home could be ready to sell quickly, you could still buy non-contingent but put your current home on the market right away. In this lightning fast market you could potentially close on both homes the same day so you don’t have to pull out funds from your home equity or investments to close on your new home. That is what is happening for the sellers of 1478 Branston right now, they are closing on both homes the same day in December!
If you need more time to get everything ready before putting your current home on the market, you could close on your new home first then take a few months to get your current home ready to sell… maybe in the spring market. That is what happened to the sellers of 8849 Cottonwood… they bought their condo last December, then sold their house in March.
This strategy can help you take advantage of the best of both worlds…
buy when the market is low, sell when the market is high.
Of course, with the crazy market right now in November 2021, the market seems to be high all the time. Some national prognosticators are predicting this will be a winter like no other, with the market staying strong through the winter. But they don’t necessarily live in the land of cold, ice and snow… will that make a difference? For now, Twin Cities market indications are that the market is softening as we move into holiday season, but pending sales and showings indicate buyer demand is still strong. What is likely holding the market back is a lack of homes for sale more than anything else. That indicates you should list your home for sale whenever you are ready… the shortage of homes for sale is in your favor at any time of year!
Sharlene Hensrud, RE/MAX Results – shensrud@homesmsp.com
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