The other day, we had an agent at our door, asking if we wanted to sell our house. To sum it up, his pitch was basically that the real estate market was hot, and that we could expect a great price for our house if we did sell. So we said to him “Great, but if we do sell, then what happens next?”
The way we see it, the real estate market is hot because there’s a shortage of good homes for sale and there’s an abundance of eager buyers. So if we’re buying in the same hot real estate market, it begs the question, is this actually the best time to be selling your house? How confident can you be that you’ll find another house that fits both your needs and your budget? These are the questions you should be asking yourself if you’re in the same situation.
Getting a home sold fast (and for the highest dollar) sounds very attractive, but it begs the question: should you sell before you buy? Selling quickly with no safeguards can actually put you out of home.
Here are some tips that you might want to explore:
You can protect yourself by inserting a clause that provides you the option to lease back your property from the buyer, at an agreed monthly rate, until you find your next home. That way, if you can’t find your next home quickly, you have options to stay on for a bit longer.
From the buyer’s point of view this might cause a little alarm, but the agreement can be structured reasonably and protect you from being in the sticky situation of not having a place to live. In a competitive bidding situation, their willingness to accept this condition could seal the deal in their favour.
You can also ask for a flexible closing date. By giving notice in writing in advance of the fixed closing, the buyer and seller both have the option of advancing or postponing the closing, with 30-60 days notice.
Remember, in a seller’s market the power is often in your hands. The financial offer is just part of the deal. If you have needs that fall outside of the numbers, it can’t hurt to propose them.