Sellers Market ~ Time to Downsize?
By REALTOR® Pat Kapowich
A Trusted Name in Silicon Valley since 1960
A Respected Name in Real Estate since 1988
Excerpt from an article original published for ActiveOver50 and its media affiliates.
Younger buyers are preoccupied with schools and more square footage while they often lack larger down payments. Not so for most older adults. The following talking points for buying, selling and moving simultaneously or in succession should be discussed in detail with your real estate professional.
Buy First, Then Sell
This is a great option if one has the financial wherewithal. Again, many older adults are more likely to be able to accomplish this over younger cash strapped home counterparts. Doing so allows one to settle into their new home while concurrently preparing their existing home for sale.
It also affords the preferred “one- move” strategy. In this example, sellers who properly prepare their vacant homes for sale will receive top dollar. The only possible down side is the inability to turn around and sell the existing home promptly. Clearly not a problem in today’s market or when guided by a talented real estate agent
Sell First, Then Buy
The best option in this case is? for the seller to move into interim housing while the home is being properly marketed. If this is not an option, so be it. A talented real estate agent will advise the seller how? best to prepare and proceed as an occupant in a home for sale.
However, once the home is under contract, the seller must make serious plans to move. Not just where to move, but when. Sellers moving out of a home before a sale is solidified should be thoroughly thought out.
The Rent Back
This provision allows sellers to remain in their homes until after the sales are finalized. Now flush with cash proceeds, these sellers can move forward confidently. This tactic bodes well for older adults. It also slows down the moving process, which is helpful the longer they have lived in their homes.
The Contingent Offer to Purchase
This is perfect for avoiding an interim move. However, this tactic is the least likely of the options to occur. A seller must accept a purchase?offer contingent upon the buyer successfully selling and closing his or her home sale. Unfortunately, sellers that would agree to contingency sales are rare, making home shopping choices extremely limited.
Older adults who complete the buying, selling, and moving process routinely assert, “I wish I had done it sooner.”
Pat was the Santa Clara County Association of Realtors “President’s Choice” Award Winner. For demonstrating the principles of good real estate practice among brokers; for promoting and protecting home ownership and property rights for all; and for distinguished service to the members of the Santa Clara County Association of REALTORS® and the community at large.