In hot markets like our current one, sellers often sell their homes quickly, yet aren’t able to find a new home right away. If you’re a seller in this situation, fret not! There are a lot of creative ways to relieve the time pressure of finding your next home. Read on for our team’s best advice for what to do when you can’t find a home.
Arrange for a Rent Back
A rent back is when you sell your home and then rent it from the new owner, becoming the new owner’s temporary tenant for a predetermined period. Your rent covers the cost of his or her mortgage payment. This scenario requires a purchaser with flexibility, but it is a common enough practice: it actually happens in about a quarter of home purchases in some markets. A rent back allows you to look for your new home from the comfort of your current home – and saves you from having to make two moves. Note: some lenders will only allow for a 60 day rent back period.
Consider a Contingency Clause
This contingency is perfect for people who are buying and selling. A clause to your contract would state that your purchase of the home won’t be finalized until you are able to find a new home. This option takes away the time crunch of the house hunt. While some buyers may not like this uncertainty in the timeline, it may be perfectly suited to others (such as families who want to move over the summer).
Look for Short-Term Vacation or Corporate Housing
Use this opportunity to test out a vacation home. With telework and online learning much more common now, it’s easier than ever to go live at the beach or in the mountains for a few months. Off-peak rates are often quite reasonable! Corporate housing is another great option if you need to stay closer to your current home.
Line Up a Rental
There is no rule that says you have to purchase your next home immediately. If you’re just not finding the right place, consider a rental in your current or desired area. We realize that clients are not keen on the idea of two moves, but moving into a rental just may save you from buying a home that isn’t the right fit. Renting is also a good way to test out an area where you think you might want to live. Renting for a few months is a great way to get a feel for whether the location will work for you.
Use a Well-Connected Realtor
Limiting your house hunt to homes currently on the market is unlikely to help you land your next home. Hiring a well-connected Realtor who is plugged into the local market is, by far, the best way to find a home in a tight market. Such an agent will know of properties that may be coming on the market in near future. She will also network with fellow Realtors to find out about other “coming soon” properties that may be just what you’re looking for. We can’t stress this one enough!
You can also move in with friends or family or a house-sitting arrangement until you find your new home.
The Bottom Line
In a hot market, finding a new home can seem like an uphill battle. If you’re unsure what to do when you can’t find a home, be sure to use a well-connected Realtor (like The Goodhart Group) and explore these less common, yet very sensible, options.
Are you getting ready to sell? Let’s start a conversation today.