Understanding and being prepared for the hurdles you might face as a home seller in the current housing market is not just smart — it’s also essential. From lining up another place to go once your home sells to finding a buyer who’s actually qualified, selling a home isn’t for the faint of heart.
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Here are the four biggest challenges for home sellers in today’s market, according to experts.
Finding Another Home To Move To Can Be Tricky
“While low inventory allows homes to sell fairly quickly in most cases, it also can make it incredibly difficult to find somewhere to go within a reasonable time,” said Realtor Dalena Adams of Century 21 Legacy. “Our market has remained highly competitive even with interest rate increases, and so when our sellers become buyers, it becomes a rush for them to find somewhere to go before the sale of their current home closes.”
The Solution
“A few ways to mitigate the stress of making a move once you sell is to ask your agent to help you find somewhere to go — whether it’s a permanent home or a short-term rental — before your house goes on the market,” Adams said. “They can also reach out to local lenders to see which ones offer a bridge loan to cover the purchase of another property while waiting for the home they’re selling to close.
“If those options aren’t a possibility, then they can always discuss the option of a temporary occupancy agreement with any potential buyer before accepting an offer. The temporary occupancy agreement will allow the sellers the option to essentially rent back the house from the buyers after closing while they find another property (this period is typically between 30-60 days depending on the situation).”
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The Contract May Not Be Strong and Reliable
“While worrying about where to go is always an issue, sellers also face the issue of whether a contract is actually strong and reliable,” said Adams. “Most agents these days require proof of funds with any offer. That proof can come in the form of a pre-approval letter, a bank letter stating cash is available or a contract on their current home.”
The Solution
“It’s always important when going over offers to look at the facts and verify them before moving forward,” Adams said. “See how thorough the lender was during the pre-approval process, what contingencies are they asking for, how solid is the current contract for the buyers’ home? While there’s never a guarantee that a contract will close, there are certainly plenty of ways to protect sellers to get them the most stable offer possible. While the amount of the offer is obviously important, it’s also paramount to understand the likelihood of that offer getting to the closing table.”