Where do I go when I sell my home? This is the #1 question we hear when speaking to prospective home sellers. The current shortage of inventory isn’t just challenging for home buyers, but also homeowners who want to sell but don’t think they would have anywhere to go. Consequently, many homeowners either decide not to make a move, or wait until they find a home before putting their home on the market. To help answer that #1 question of where to go next, we’ll share a thorough overview of the advantages to buying a home before selling. We’ve got some creative options for homeowners to consider that may inspire them to take the plunge and capitalize on the sellers market right now!

One advantage of helping so many people sell their homes is that we’ve seen lots of housing options that have enabled clients to bridge the gap between selling a home and purchasing a new one. Consider these ideas:

• Rent a short-term apartment or home: Renting a short-term apartment can be a great option for homeowners who need temporary housing while they search for a new home to purchase. Many apartment complexes offer flexible lease terms, which can allow homeowners to rent for as little as a few months. Airbnb, VRBO and other websites offer a multitude of housing choices that we have seen several clients use with success.

• Stay with family or friends: Staying with family or friends can be an excellent option for homeowners who have sold their home and need a temporary place to stay until they can find and purchase a new one. Not only can it be a cost-effective solution, but it can also provide emotional support during a potentially stressful time. Staying with others is a great opportunity to spend quality time with family and friends while also saving money on rent or temporary housing which can go towards the purchase of the next home.

• Consider a vacation rental: Vacation rentals can be a great option for homeowners who need temporary housing. Many vacation rentals offer flexible lease terms and can be rented for as little as a few weeks or months. Especially with many people being able to work remotely, several homeowners opt for a vacation rental during this transition period (i.e. Cape Cod, Florida, etc).

• Stay in a second home. One of the most common scenarios we see is that if the homeowner already has a second home, whether it be a vacation home or investment property, they will move into that property for the short term in order to be able to comfortably take their time with identifying the right next home and navigating the closing process.

• Extended-stay hotels: Extended-stay hotels offer fully furnished suites with kitchenettes and other amenities. Homeowners can rent a suite for a few weeks or months while they search for a new home. Additionally, extended-stay hotels typically offer weekly or monthly rates that can be more affordable than traditional hotels or short-term rentals. This can be especially beneficial for those who are in the midst of a home sale and may not want to commit to a long-term lease or mortgage until they have found their next home.

• Leverage a Leaseback: A leaseback is an agreement between the homeowner and the buyer of the home where the homeowner leases the property back from the new owner for a specified period of time. Essentially, the homeowner becomes a tenant in their own home for a set period of time after the sale closes. A leaseback can give homeowners more time to find a new home without the added pressure of a quick move-out deadline. This can be especially beneficial in a competitive market where finding a new home can be a challenge. With a leaseback, homeowners can avoid the hassle and expense of finding temporary housing while they search for a new home. They can continue living in their own home for the duration of the leaseback period, which is typically up to 2 months after the closing date. This also allows the seller to tap into the equity in their home and use the proceeds to purchase the next property with much more confidence and liquidated assets than they might otherwise have access to.
• Explore house-sitting opportunities: House-sitting opportunities can be a cost-effective way to find temporary housing. Homeowners can offer to house-sit for friends or family members who are going out of town, or they can look for house-sitting opportunities through websites such as TrustedHousesitters.com.

• Use a storage unit: If homeowners have a lot of belongings, they may consider putting them in a storage unit and renting a smaller apartment or other temporary housing option. This can be a good way to reduce living expenses and simplify the process of moving to a new home. We also have several relationships with moving companies that will actually store homeowner’s belongings free of charge for a few months until they are able to find their new home, which minimizes the hassle and cost associated with making two separate moves.

We hope you’ve now got some great leads on housing options should you list your home for sale. Should you do it? Consider this thorough overview on the benefits of selling a home prior to purchasing a home. You may be surprised to learn that selling your home before buying a new one can provide you with more flexibility and leverage in a competitive market.

While many people believe that purchasing a home before selling their existing home is more advantageous, many discerning homebuyers gain a competitive edge by first selling their home.  Here are a few of the benefits of selling your home before purchasing a new house:

• Understand your buying power: By selling your home before buying a new one, you’ll have a better understanding of your buying power. Knowing the exact amount of equity you have in your current home can help you determine how much you can afford to spend on a new home. This can be particularly important in a competitive market, where you may need to make a strong offer in order to secure the home you want.

• More negotiating power: If you’ve already sold your current home, you’ll have more negotiating power when going into potential multiple bid situations. Not only will you have a more flexible timeline, you’ll also have access to the proceeds from your home sale which will strengthen your offer. Additionally, having a home sale contingency can make it a challenge to get an offer accepted as there is more risk for a homeowner who wants assurance that their home sale will be as seamless as possible. Whereas, requiring a home sale contingency adds an unknown variable that is largely out of the home buyer and seller’s control.

• Less financial risk: If you buy a new home before selling your current one, you’ll be carrying two mortgages at once. This can be a significant financial risk, especially if your current home takes longer to sell than you anticipated. By selling your current home first, you can avoid carrying two mortgages and reduce your financial risk. Selling your existing home before buying a new one also ensures that you have the financial resources to make a down payment and qualify for a mortgage on a new home.

• Time to find the right home: When you’re not under pressure to buy a new home quickly, you’ll have more time to find the right one. You can take the time to research neighborhoods, tour homes, and make informed decisions about which home is the best fit for you and your family. As mentioned above, there are several options available for homeowners to gain more flexibility to bridge the gap between the sale of their home and buying a new home if they aren’t able to find something right away.

• Reduced Stress: Trying to buy a new home while still owning your existing one can be incredibly stressful. You’ll have to deal with showings, open houses, and keeping your home in pristine condition, all while trying to find a new home. By selling your existing home first, you can focus all your energy and attention on finding and buying a new home without the added stress of selling your old one.

As you can see, selling your current home before buying a new one can provide you with more flexibility and leverage in a competitive market. It can help you understand your buying power, give you more negotiating power with potential buyers, reduce your financial risk, and give you time to find the right home. Before you buy a new home, it’s worth considering the advantages of selling your current home first.

Our team has helped hundreds of families successfully navigate buying and selling a home simultaneously. While you might anticipate a stressful experience, it can actually be an incredibly efficient process. At Andersen Group Realty, we have a team of experienced professionals to ensure the process goes as smoothly as possible and that we help our clients navigate this challenging process.