If you’re worried about finding the right home while you’re selling your current one, today’s message may help. There are three ways you can navigate this common scenario.
“Hey Jeremy, I heard the St. George real estate market is fantastic!”
It is. It has been. Washington County home values are up over $120,000 on average since 2013 and growth appears to be happening everywhere! And this is great…unless your home sells so quickly that you may find yourself homeless before you find the next one!
One of the biggest challenges our St. George real estate clients are facing in a fast- market is the delicate balancing act of lining up a buyer to close on their home, while simultaneously trying to close on their next home purchase.
What happens if you sell your home TOO fast? Say 1-31 days fast?
First, to give you some perspective, let’s consider the example of a listing our team recently sold. Within three days of going on the market, we’d received eight offers, and our seller ultimately earned $20,000 more than their list price. This kind of scenario is exciting, but it is exactly the sort of situation that might elicit the concern we mentioned earlier.
Thankfully, there are several ways you can protect yourself from ending up without a home after you sell. Here are three of the best (and most common) solutions:
1. Purchase a home before you sell. If you have the means to do this, this is the ideal solution. This of course requires either:
a. A bunch of cash ($300k on average) in the bank, or;
b. Financing and income to carry two house payments for a short period of time.
2. Get a bridge loan. Though less preferable than our first option, this financing solution allows you to literally “bridge the gap” as you sell one home to purchase the next.
3. Submit an offer “subject to” the sale of your current residence. Although the third-best of these options, this solution has become very common. Submitting a contingent offer essentially means that when you write offers as a buyer, you include a contingency stating that your purchase is subject to the success of your own home sale. However, sellers are sometimes skeptical of this kind of offer.
This type of issue is exactly why a good real estate professional is worth their weight in salt, especially in a “hot market.” Whichever option you choose, our team would be happy to guide you to the perfect home. We have the systems and resources to find your next property, even if it isn’t on the MLS.
If you have any other questions or would like more information, feel free to give us a call at 435-215-4533 or email us at email@example.com.