Navigating the Simultaneous sell-buy/buy-sell

Challenge: You want/need to “move up” but you need to sell your current home in order to buy (because you either need the equity for down payment, or your debt ratios are too tight to be approved for an additional mortgage).

Many of our clients are in this boat, and the current competitive market makes this pickle especially challenging. Right now it is difficult to compete in the buying process with a contingent offer. (In this case the contingency would be that your home must sell before you can close on the new purchase)

There are a few solutions or options for home owners in this predicament. None are perfect; however, with a great Realtor, the goal can be accomplished.

Option 1: Prepare, list and sell your existing home. You would then obtain a short term rental or interim housing while you look for your new home to buy. This requires 2 moves, but puts you in a much better buying position with liquid down payment, your purchase not being contingent on the sale of of your house, potentially more flexible closing period, and no need to request a rentback period.

*We realize many people don’t want to move twice, so here are a few other options.

Option 2: List your home at fair market value, or slightly below. You will likely obtain more than one offer, be more in control the closing terms, and negotiate a longer closing period which would allow you time to shop for a replacement house. The sale would be “subject to finding a suitable replacement property” within a certain period of time. You can then write an offer “subject to the closing” (rather than the sale) of your existing home already in pending status.

Ideally in this situation you’d be through the inspection and appraisal contingency on the sale of your home when you write the offer to purchase your new home, while still contingent on closing. This is perceived as a stronger position, with no predictable obstacles in the way. The close of escrow of both the sale and purchase would be scheduled simultaneously.

Option 3: You prepare your property for sale, find a replacement home, and write an offer contingent on the sale and closing of your current home. If the offer gets accepted, the status of the sale agreement becomes “bumpable” meaning that the contingent offer can be bumped by another buyer under certain terms and conditions prior to closing.

Option 4: There’s got to be a rich Aunt or Uncle out there somewhere that will give you some “bridge” financing, right??

News & Events – Prices and rates expected to rise in ’14

Rare, Double-Whammy

There’s a lot of excitement in the air in anticipation of a very strong 2014 nationally and locally. Check out this Portland Business Journal article ranking Portland in the top 10 of the countries hottest markets next year. Fasten your seatbelts and get ready. Prices up and rates too….this will be interesting.

If you’ve been on the fence to buy or sell, now may be the time.

For Sellers – Don’t take rejection personally

When you are ready to sell your home it becomes a product in a marketing campaign. This means buyers are going to come in with a critical eye and pass judgment on the property. It’s important not to take this personally: everyone has different styles and tastes, and people want what they want. As you get physically ready to sell your house, it’s very important that you also get prepared emotionally: the more you can detach from your property, the easier and more enjoyable the process will be.

For Sellers – Make yourself scarce

For best results, we want maximum exposure for your property from the start. The seller has the control of the negotiations in the beginning but, as time goes on, the buyer then gains control of negotiations. Therefore, make showing the house easy: relocate your pets and make yourself scarce. The more time I have to show the house in the beginning, the more likely we are to find a buyer quickly.

For Sellers – Store away your valuables

There is so much involved in staging, I can’t really cover it here. Just know that at the outset I will give you customized guidance in staging your home: curb appeal, de-personalizing, de-cluttering, repairing and so on. One of the key aspects of staging that can sometimes be overlooked is that it’s important to store your valuables, especially those things that people can easily stick in their pocket. This includes storing your private mail, financial statements, important papers – anything that might give clues your financial position. Also, put away any pharmaceuticals or personal items that might raise questions in the buyers’ minds or give away something about your situation. The idea is to put all the focus on the house itself so that people can imagine themselves in it.

For Sellers – Have a pre-inspection & be proactive

Anticipating maintenance issues in your home and being proactive with repairs will make the selling process much smoother. Some sellers bury their head in the sand and avoid fixing things until they come up in inspections. However, this can backfire: the buyer can have second thoughts when these surprises arise. Get a pre-inspection and fix what needs to be fixed.

For Sellers – Trust the Marketing Plan

When you are ready to sell your home, it becomes a product in a marketing campaign. It’s important to work with people that understand how to differentiate your property from the competition. Different properties warrant different marketing strategies: is the home vacant, is it distressed, is it multi-family? Is it located on a quiet street, near a grammar school, near a shopping district? Based on the property and your goals, we’ll design a strategic marketing plan with a 4-point approach: public communication, agent networking, online communication, and home “product” presentation. It’s important that you trust the marketing process. If you second guess it and let concerns and worries get the best of you, the process will become stressful. Trust our years of experience: we will sell your house.

For Sellers – Set Goals

When we meet, we will help you get very clear on the goals for the sale of your house. For example, why are you selling right now? How soon do you want to be out of the house? Do you need to be in the house for the next two months or is the house already vacant? Are you selling to buy? Is buying contingent on the sale of your house? We have the patience and experience to support you through whatever your circumstances and goals are. Once we have a clear picture of your goals, we will work together to achieve them.