Gone are the days when your sellers could list their current home and purchase a new one in perfect synchrony. Across the country, the amount of available inventory on the housing market is at an all-time low. Obviously, the shortage of available options is currently a significant concern for your potential listing clients. They are afraid to list their home for fear of not having a new place to live. As you navigate the current market, consider the following strategies to find your sellers their next home.
Find a Rental
If your client wants to take their time finding a house, recommend that they start with a rental. Renting allows them to take their time looking at homes and wait for new inventory to come on the market. It also allows them to look at other possibilities to find the right match. Potential buyers can rent in a community they are interested in to understand the atmosphere and neighborhood better.
Opt For a Leaseback
Negotiate a leaseback with the new buyer, which will give your clients more time to find and purchase a new house. The seller would then lease the home from the new owner after the sale, essentially renting from the new owner until the sellers could buy a home. Due to current market conditions, many buyers are becoming more comfortable with leaseback agreements.
Negotiate a longer closing period
Negotiating for an extended closing date allows more time to look for alternatives. You can establish a preset timetable so that your client can still close with ample time to find a new home.
Finding a new construction or nearly completed spec home for your seller is often a great solution. Check with area builders for the status of homes that are not yet listed for sale. With new construction, you remove some of the hassle and risk since your clients won’t need to wait on a current owner to find a property to buy. It also gives the option of aligning the closing dates of the new home with the selling of the old one.
Instead of looking for an existing home, suggest building one instead. Purchasing land and building a house gives your clients more control over the timetable allowing for a smoother transition. Because of their versatility and freedom to design your clients’ needs and specifications, custom-built homes are a great option.
Broaden the Search Area
If your client is willing to broaden their search area, you will expand their choices. By expanding the search to include less competitive places, they may get more square footage for a lower price.
A bridge loan allows buyers to get financing for their next home while they are still in the process of selling the old one. With these loans, the old house is often used as collateral. These loans last for one year on average. As the name denotes, it bridges the financing gap needed for the new home while waiting for the old house to sell.
The Possibilities Are Endless
There’s no need to limit yourself or your clients to traditional means and practices. There are many ways to adapt the process to allow enough time to find or build an ideal home. All it takes is some creativity and an open mind to navigate the current market.