While many real estate markets continue to burn hot, this is a great time for sellers of special, unusual, or unique properties to jump in and cash out.
• Sellers who “paid too much” for their real estate in the last boom or who ended up with a budget-breaking construction or renovation project that priced their home out of pre-boom markets.
• Sellers who did not apply the “location, location, location” value mantra and bought on a “lesser” street, a less popular neighborhood, or in a less-urban community where properties typically appreciate in value more slowly.
• Sellers who do not want to invest the time and thousands it would take to modernize their home. This includes those who bought a home they loved except for the necessary reno to solve the too small kitchen/missing ensuite/lack of playroom, but then never did that reno and won’t do it now.
• Sellers who don’t live near the best schools or popular amenities and who’s property value was usually penalized for this.
• Sellers who live on busy streets or on the edge of commercial areas.
• Sellers who have a second home or recreational property they can move to if they can’t find exactly what they want to buy or rent next because prices in their preferred buying or rental area are already too high.
• Sellers who have concerns about climate change and how it may devalue their property. Those with waterfront or flood-prone properties may want to relocate while their real estate holds its enhanced value.
• Sellers who face other necessary or painful reasons why they must move now even if they don’t really want to.
Many home purchase contracts have contingencies that allow the buyer to agree to the terms only if certain actions occur. For example, a buyer may not have to go through with the purchase of the new home they are in contract for unless they’re able to sell their old home first. This gives the home buyer protection in the event no one buys their old home, or if nobody is willing to buy the property at the terms they desire. But in a market like we have in San Diego, where homes are getting multiple offers on the first day of listing, it's unlikely a seller will accept the buyer’s contingency. That doesn't have to be a problem, though, if you Buy Then Sell.
Unlike a traditional home sale, the Buy Before You Sell Program gets you into your new home first. We’ll get you fully underwritten for a new home loan - including a down payment advance - so you can start making offers fast. Purchase the home you want, and move in right away, and you only have to pay your new mortgage, while we cover your mortgage as we sell the house! Once the old house is sold, the process is complete.
Ask a buyer what it is like trying to purchase a home in today’s housing market, and you'll hear a common complaint: It is frustrating, overwhelming, exhausting, and disheartening. Home buyers run around each weekend to see the few homes that are newly on the market. They write an offer, and a few days later they write a counter offer, often for way more than the asking price. A day or two goes by, and the buyer's offer is rejected. So how do you make your offer stand out, and make sure you get the home you want? One of the easiest ways is CASH.
"Sure, it sounds simple," you say, "but what normal person has that much cash on hand?"
The answer may surprise you: You could, through my Buy Before You Sell Program.
Whether you’re a veteran real estate investor or a first time homebuyer, you can expect to provide your loan officer with no shortage of documents. The lender is gathering information needed in order to get your loan file completed and sent over to the underwriting department for an approval. Knowing in advance what your loan officer is sure to ask for will help ensure a smooth closing.
Repeat home buyers use their past experience to skip over many concerns commonly experienced by first-time buyers. The equity in their home may provide a down payment for their new purchase. They may choose a 20% down conventional mortgage instead of a low-down-payment FHA or VA mortgage. But selling one home and buying another is not without its own set of concerns: repeat buyers must correctly time their current home’s sale and upcoming purchase. Looking for a new home before listing your current home for sale takes some of the anxiety out of the situation. Of course, these homeowners are then under the gun to sell their existing houses pronto and try to close on both properties concurrently after finding a home to buy. It can be tricky, but it's not impossible.
Homes generally sell within days of hitting the market when inventory is reduced because there are many buyers, so there's less risk involved with buying first and selling second. In this situation, few sellers will accept a contingent offer however, stating that you have to be able to sell your existing property first before you close on the new property. You could be stuck owning two residences until your home sells, unless you get into my Buy Before You Sell Program.
It’s a big question with no easy answer: Should you keep renting, or is it time to think about buying a home? One of the major benefits of being a homeowner is building equity with each mortgage payment, instead of putting money into your landlord’s pocket. But that doesn’t mean buying is always the best choice—as a renter, you enjoy more flexibility and avoid many of the costs that come with homeownership.
“This is an extremely personal decision,” says David Parsons, broker/owner of Re/Max North Professionals in Burlington, VT. “For those that want the flexibility to move quickly, have no desire to maintain a property, or need to save up money before making a purchase, renting is worthy of strong consideration.”
But there’s more to consider. We understand the magnitude of your rent versus buy quandary, and we’re here to assist. Here are seven questions to ponder to help decide what’s right for you.