Those living in most areas of the East Bay are aware that the market has turned. Move up buyers are those who can benefit greatly from this market – it’s much easier to sell in a low inventory/multiple offer market. But purchasing a replacement home offers a few more challenges. So what are your options?
Evaluate your financing situation. See if you are able to purchase your replacement home before selling. Those who have lived in their homes for a long time have low mortgage payments, and may be able to afford the new mortgage as well as the existing one. This will allow you to identify your replacement property first, make the offer and then put your house on the market.
List your house first. Request a seller contingency that you find a replacement house first. This can be accomplished by asking for a rent-back of your existing property from the buyer (new owners). Know that lenders will cap this at a 60 day time period.
Sell and then rent. This may be a viable option for those moving to a new area, when you need to get acquainted with the community and determine where in that city you want to live. You won’t be rushed, and you’ll have the option of considering a short sale with an unknown timetable, or you can consider a fixer at a great price with plenty of time to make repairs or updates.
Buyers know in a fast moving market, they will need to compete. Those with the ability to accommodate your purchase needs may be a great option to make your move less problematic.