If you have been a buyer in this market, then you have noticed a lack of inventory of homes for sale. Some people think it is because the banks are hanging on to inventory. That may be true to some extent (I do not know why they would in Orange County because they sell so quickly), but the main reason is because equity sellers are reluctant to sell.
Some think they won’t get the price they want or they may not have enough equity or they fear they won’t be able to find a suitable replacement home.
Here is what I can say to the sellers:
1) Yes, you can probably get a pretty good price for your home. Let me show you how.
2) Not enough equity? Let’s crunch some numbers and see what can work for you now and/or perhaps come up with a game plan to get you what you want in the future.
And finally, let’s look at the replacement home issue. If you need to use your equity to purchase your new home, then you need to close on your current home first or at least concurrently with your new home. The trick is doing this in today’s changing market. Here are some options you, the seller, may not be aware of:
1) Rent back from your buyer. If you accept an offer from a buyer prior to securing your new home, then you can negotiate with your buyer to rent back from them for a while after you close escrow on your current home (try to go no more than 30 days) while you find and close on your new home. Not all buyers will go for this, but most will.
2) Try to get an offer accepted on your new home prior to getting into escrow on your current home. In this market, it can be difficult for a seller to want to accept this kind of offer, but it is worth a try. You can help the seller to accept your offer by perhaps paying more for the home, putting up a larger earnest money deposit, or something similar. A seller may give you a time limit to get your home into escrow. This means they may reserve the right to cancel the contract if you do not accept an offer on your current home in a certain time period.
3) Sell your current home for the best possible price, and rent a home for a while if you cannot find a suitable replacement property. While this can force you to move twice, it may make the most economical sense. It will empower you as a seller and a buyer. You won’t be forced to sell for too low of a price and you won’t be forced to buy for too high of a price nor settle for a home because you can’t find anything else. It may also reduce your stress level!
Have more questions or want to go over your options? Call me! 949.525.5905.