Finding yourself between homes happens more often than most people realize, and it's a situation we're well prepared to help with. Selling quickly is exciting, but it can also leave you without a place to land.
Since inventory started tightening in April 2020, the market has stayed hot. More homes may come on the market in the spring, but keep in mind that every seller who lists also needs somewhere to go, so finding your next place could take longer than you'd like. Still, a fast sale has real advantages: less stress, a strong chance of getting your asking price or more, and the ability to compare several offers.
So what do you do if your home sells before you've found the next one? Here are five approaches worth considering.
1. Talk About a Home Sale Contingency
A contingency clause can make closing on your current home dependent on you finding a new one. Buyers generally aren't fans of these clauses because they add uncertainty to the deal. But with demand as strong as it is, you may still find a buyer whose schedule is flexible, like a family that would rather move once the school year is underway. I'll go over whether this kind of clause makes sense for your situation.
2. Look Into a Bridge Loan
A bridge loan is a short-term loan that can help cover your living expenses while your current home is under contract, so you don't have to drain your savings. It may also give you more buying power. The tradeoffs are higher interest rates and a shorter repayment period, so crunch the numbers and read the fine print before committing.
3. Try a Vacation Rental or Corporate Housing
Seasonal rentals can be found near beaches, in cities, in the mountains and in small tourist towns. As travel bounced back after 2020, the seasonal rental market was expected to recover as well. Historically, these rentals haven't been snapped up as quickly as year-round rentals, which means you'll often have more choices and lower prices, especially if you look for off-season deals.
Corporate housing is another option that offers flexibility while you get settled. Both choices typically come furnished, which is a big plus if your belongings are in storage.
4. Include Rentals in Your Search
As a backup plan, check what's available at nearby apartment communities and what they're charging. I keep a close eye on the local market and have contacts who focus specifically on rentals, not only sales.
Some homeowners may even decide to rent out their home instead of selling it. That includes people who bought a multi-family property or a vacation home that they rent out during the off-season.
5. Work With a Well-Connected Agent
When inventory is tight, an agent's network can make all the difference. I can search a database of potential sellers in the neighborhoods you're targeting, reach out to them directly and set up previews of their homes. The goal is to help you sell and buy at the same time.
Let's Talk Through Your Options
Selling before you've bought can feel nerve-wracking, especially in a fast market, but there are simple solutions, and depending on conditions, some creative ones too. It might even turn out to be a pleasant experience, like living in an affordable vacation rental while you search for the right home at your own pace. If you're facing this situation, reach out and let's talk about what makes sense for you.