How to Buy and Sell in This Strong, Hectic Real Estate Market
We’re going over what to know if you need to buy and sell a home in this market.
Everyone’s hearing about how great of a market this is to be in whether you’re a buyer or a seller. Home values are expected to rise by another 8% or more this year and rates are at all-time lows. But how can you juggle buying and selling at the same time?
You want to take advantage of these conditions, but you’re probably worried about finding a house because of the limited inventory. In December, national inventory was at its lowest point in history. Here are the steps you need to take to accomplish the feat of buying and selling simultaneously:
1. Prepare earlier. If you plan on buying and selling in 2021, it’s time to start setting expectations and making a plan with your agent. In that plan, you have to balance the fact that you’re in the driver’s seat as a seller with the fact that the opposite is true for you as a buyer.
2. Avoid being a contingent buyer. Your offer will go to the bottom of the list when other offers are involved. We can get rid of this contingency by selling your home and negotiating a rent-back with your buyer until you find your home of choice. Most buyers are willing to offer the rent-back as long as they can lock in the purchase. It won’t always work, but it’s a good strategy to buy you some time.
3. Consider new construction. Builder confidence is at an all-time high and new construction is taking off. These prices are going to be inflated, yes, but your dollar will stretch further than normal because of the low interest rates. Looking at lots or tearing down a really old house could also be solutions. We’ll be discussing the latter on an upcoming video series.
4. Look at what’s been on the market and hasn’t sold. Maybe a home hasn’t sold because it needs some work, but it’s a diamond in the rough that you can renovate for the right price. You could save some money on the purchase and have the money to renovate it.
"Contingent offers just won’t work in this fast-paced market."
It’s a challenging market for buyers, but it’s definitely one you can succeed in if you have the right plan in place. If you’d like to get started putting your plan together or have any other questions related to real estate, don't hesitate to reach out via phone or email. We look forward to hearing from you soon.