3 major challenges facing sellers that must also buy
It's a seller's real estate market. You know you've got sufficient equity in your Seal Beach home. You're ready to tap into that equity to sell your home and buy another to better fit your changing lifestyle needs.
If you are planning to sell your home only once you locate a replacement, this is referred to as being a "contingent seller". Anytime one action is contingent upon another, it presents unique challenges both financially and psychologically. I have identified the three major challenges you may be presented with if you are considering such a move.
First, the beauty of selling your home in this market environment is the ability to get top dollar. But the same forces that control what you'll sell your home for also govern what you'll pay for the home you'll be buying. Understanding this single principal can either set you up for success or failure as you shift from the mentality of a "Seller" to that of a "Buyer". Be realistic with your expectations.
Second, also to your benefit as a seller, there are very few homes for sale in this market which will create considerable interest in your home. This also means there won't be a lot of Seal Beach homes for you to chose from as a buyer and you'll need to be prepared to compromise on your list of "must haves". If you are not willing to consider alternate locations, floor plans or neighborhoods then now is not the time to enter the market.
Lastly, being a "contingent seller" means that the offer you'll now be making on the home you will be buying may not appear as attractive to the person selling. At the direction of your real estate professional, you may need to consider other ways to strengthen your offer such as offering at or over full price, increasing your down payment or being flexible with the sellers demands.
If you must buy now and want to avoid many of the challenges described previously, you should consider using interim financing to close on your next home. In this scenario, your offer appears stronger, has less "baggage" and gives you maximum flexibility. You'll be able to go back and sell your home quickly and for top dollar. The proceeds from that sale can be applied towards the loan used to purchase your new home.
Get informed about all the dynamics at work in this market like prices and available inventory before getting started by visiting the "What's My Home Worth" page. This information will help you make an informed decision about whether now is the right time to sell.
About the author
Nat Ferguson is a fourth generation resident of Seal Beach, Real Estate Broker, Past President of the Seal Beach Chamber of Commerce and member of the Lions Club. He can be contacted at (562) 206-0342 or clicking HERE to schedule an appointment.