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Health & Fitness

Buying and Selling Can Be a Juggling Act

Ah, summer… It’s traditionally a time of barbecues, beach trips, vacations, and for some, moving.

The real estate market often heats up during the summer as people scramble to get the kids settled before the school year starts again. Even people who don’t have kids often house hunt and move during the warm, long days of summer.

This year, we’re in a strong seller’s market, which means sellers are in the driver’s seat, calling the shots. Fast sales, multiple offers, and bidding wars are a part of the Long Beach real estate market in many neighborhoods where inventory is razor thin.

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And that’s great for sellers – unless they also need to buy. Because this is NOT a buyer’s market!

So what’s one to do when you are buying and selling? How do you juggle two transactions and a move?

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Sometimes people decide to move forward with selling, rent temporarily and then purchase their next home when they find the perfect home. But you don’t necessarily want to make that rental period very long in a market where prices are increasing because you are locking in today’s prices on your sale and potentially paying more when you locate the right home.

If cash is no object, buying first can make the transition smoother. After all, you know where you’re going to go and you have the luxury of doing things like painting, changing flooring or moving leisurely when you buy first and then sell.

For many people, however, their home sales proceeds will fund their down payment so they need to sell and then buy. The trick is to get an offer accepted on the next home with a contingency on selling. Especially when you are competing with other buyers who don’t have to sell a home.

To become a competitive buyer, it’s advisable to put your home on the market first and begin getting offers – even better accept an offer – and then locate and make an offer on your replacement home. You can add a clause to your home sale contract, making it contingent upon your purchase. You may even add a rent-back period, allowing you to remain in your current home after escrow closes for a short period, if you think locating a home may be challenging. And on the purchase, you can add a clause making it contingent upon your sale.

The structure of the contingency clauses can be a bit tricky. How long will you have to locate a replacement property? How long will you have to sell your home? What if one escrow closing date is different? Will the other party be flexible?

Before you embark on a contingent sale or purchase, it is wise to consult with a knowledgeable Realtor about your specific circumstances. He or she can help you determine what price you’ll get for your home, how long it will probably take to sell, and how easy or difficult it may be to locate a next home that matches your budget and needs. The more flexible you are, the better chance you have of successfully avoiding two moves. And while one move may be what you planned, few people want to move twice.





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