Being a Home Seller AND a Home Buyer in a Hot Market
Twin Cities homeowners are in a catch 22. They want to sell but they can't find a home to purchase... and they can't purchase a home without selling their home. So they are stuck in a tough spot in a hot seller's market and up against the clock with rising interest rates.
Keys to navigating the seller/buyer HOT market in the Twin Cities
Home buyer/seller prospects must have very high motivation to sell and buy. This is NOT a market for lookers.
BEFORE you start to look at homes in person, list your house and get a buyer representation agreement. Looking at homes you can’t buy (most offers contingent upon the sale of your home rarely win in multi offer scenarios unless you DRASTICALLY over-pay to compensate for risk) is just a waste of time for everyone. When agents take unqualified buyers to see homes, it violates the fiduciary to the seller (ready, willing and able buyers). You wouldn’t want other agents bringing unqualified buyers through your home either.
Having a buyer agreement allows your agent to represent you in searching for off-market homes to purchase. This might be the best way to find a home in a competitive market.
Set realistic expectations on your purchase options. This is where true motivation is required. Your need or want to transition in this market must exceed a desire to get the perfect next home UNLESS you qualify to buy your next house without selling the current home.
Your options when an offer is accepted on your current home:
- Select the best home available on the market, write a winnable offer contingent on the close of their home. If successful, you should be able to concurrently close and move once.
- Find an alternative place to move to or rent if a suitable home isn’t available, and wait until the right home comes to market.
- Select a buildable lot with your agent before your home marketing and showings start. Plan to have a preferred builder build your ideal home. Time the marketing/showings of the home to generate an offer that will close at/near the completion date of your new home.
If options 1-3 above are not an option for you, you are not qualified to transact in this market.
It is extremely important to talk to a lender that is experienced in financing EXISTING homeowners. The lender that works with first time home buyers may not have the same understanding of the double move or know creative options to help you qualify to buy without selling or bridge the finacing gap.
Talk to an experienced local agent that has an excellent reputation in the area. Seller's and their agents will want to have confidence that your deal will close and your agent's experience and reputation will give you leveage in your move.
BOTTOM LINE:
Homeowners, your need or want to transition to a new home in this market must exceed a desire to get the perfect next home UNLESS you qualify to buy your next house without selling the current home.
WHY Get Pre-Approved Before You Look at Homes
WHAT Does it Take to Get Pre-Approved for a Mortgage
