One of the biggest challenges for would-be Sellers in the Portland real estate market, is what to do after you have sold your home. With this quite possibly being the hottest Seller’s Market we have ever seen, it often feels like selling your home is a forgone conclusion — it’s just a matter of how many offers you will get, and how high over your asking price those offers will be. While this isn’t always the case, it certainly stands true that if you price your home appropriately, and you have a solid product to offer, there will be a line of Buyers ready and willing to offer you the moon for your home. But, what do you do next?
Knowing that the market is extremely competitive and challenging for Buyers, many people are nervous about the prospect of selling their current home, simply because they don’t know where they will live once it’s sold. They would love to take advantage of the current market on the selling side, but don’t relish the prospect of having a ticking clock on when they need to find their next home. So, here are three tips for how to make that transition, without feeling the stress of needing to make a major life decision, with a finite amount of time to make it.
- Negotiate a rent-back on your current property — Oftentimes in this market, Buyers are willing to offer any and all terms the Seller is looking for. A question we often get when listing property is, “what do the Sellers need out of the offer?” Negotiating a rent-back would allow you to stay in your current home for an additional 30-60 days after closing on the sale. In some cases, we can negotiate for this period of time to be free of charge. In others, you simply cover the cost of the new owner’s mortgage payment each month. If the Buyer of your home is financing the purchase, their Lender will always have a maximum number of days you are allowed rent the property back from the new owner, so this certainly isn’t a long-term solution. However, it can be an attractive option to at least buy some additional time to begin looking for your next place!
- Find a furnished short-term rental home — While you will likely end up paying more per month than you were paying for your mortgage, a furnished short-term rental property is a great way to buy yourself more time to shop for a home. This allows you to sell your current home, get a pre-approval for your next purchase, and have a comfortable place to live for an extended period of time. By renting a furnished home, you can also avoid the dreaded prospect of moving twice — just store your furniture in a storage unit or Pod, and then have it all delivered to your new home once you find it!
- Purchase your next home before you sell — this option requires you to be somewhat risk-tolerant, along with also being able to qualify for carrying both mortgages simultaneously (for both your current home and your new home). While the amount of time you carry both mortgages will likely be short in most cases, you will still need to be approved by your Lender for both payments. This is by far the most ideal way to make your transition, but is not an available option for everyone. If you are interested in making a move in this market, I would recommend talking with your Lender first, so you can understand whether this is an option for you. Then, we can discuss what the go-to-market strategy would look like for your current home, to ensure you feel comfortable with that process as well!
Whichever route you end up choosing, there will be a certain level of discomfort involved, so it’s wise to spend some time strategizing and preparing, prior to embarking on the journey of selling and buying in this market. This will allow you to feel well-prepared and open to making short-term sacrifices, which will ultimately help you accomplish your goal of finding your next home!