Read more about selling your home to cash in your equity, and how to go about then turning around and buying in a seller's market!
If you are thinking of selling, the time do so is now. Inventory is slowly ticking upward and offers are slightly slowing down. The good news? Prices right now in Rockwall County are still very high, on average 38 percent higher, than they were this time just two years ago.
So whether you are looking to take advantage of the market and sell now while you can – or maybe you’re planning on moving soon and want to explore all your options but you need to figure out your next move. Whatever the case, we have put together a few options to consider if you are looking for places to live – or wondering how best to capitalize on current opportunities in this market.
One highly recommended option is to consider downsizing for a net gain! This is a great option that will provide a potentially great return for you, even in a Seller’s Market. While selling is easy, the buying side may take a little longer. But don’t worry. You have options. A good realtor will work hard on your behalf after the sale of your home to ensure you find exactly what you're looking for next.
In the meantime, here are a few options for where to live and what to do while you’re in between the selling and buying process, and while putting in offers on your next dream home after cashing out on all of that equity in your current home!
First, Consider Downsizing for a Net Gain
If your home value now is $750,000, you have realized a gain of at least 30 percent over the last couple of years. So you’ve gained $225K! Then, let’s say you choose to go buy a house at $500K, which we all agree you will be paying higher in this market, by about 150K using the same calculation with the 30 percent price appreciation over the past two years. So your net gain would still be $75K total on your sale!! So if you’re looking for a great option that leaves money in your pocket, we would recommend this first and foremost.
Or, just plain want to sell, but then wondering where to live?
#1 – Do a Lease-Back Agreement
You’re not ready to move but someone is wanting to buy your house and you are ready to sell. Instead of rushing to find a new house, pack your home and make the move, talk to the buyers of your home. See if you can make a rent-back agreement. If they agree, this agreement will allow you to stay in your current home for a set amount of time and for a certain price. This gives you time to find a house and plan for your move. In this market, Lease-Back Agreements are typically made for anywhere from 30 to 90 days. Typically, these agreements are only for about a week.
#2 Stay with friends or family
Another option is to stay with friends or family. This is the most economical option. If they have the space and are willing, this offers a cheaper way for you to live somewhere while waiting to find your next home. A downside of this option is that you wouldn’t have your own living space, so this is probably a good option if you only plan to stay for a week to a month.
The following options are expensive, but still options...
#3 Short-Term Rentals
Companies such as Airbnb, HomeAway, and VRBO provide short-term rentals services. There is less commitment involved with this method of renting, and it provides you with somewhere you can live for a flexible amount of time and not be bound to a contract.
#4 Long-Term Rentals
Long-term rentals can range from 30 days to 6 or more months. These are great options if you plan to build a house after you sell your current one, or just want plenty of time to look around and put in offers. It will allow you to have an actual home that you feel settled in while in between homes. The only downside to long-term rentals is that if you find a house before your lease ends, you might get stuck with two house payments for a couple of months.
#5 Extended Stay Hotels
Extended Stay Hotels are created for people to stay and live there for weeks on end. They typically offer discounted rates, self-service laundry, and in-suite kitchens to make it feel more like a home. They range in price and quality, and some offer great amenities, such as room service, pools, and gyms.
#6 Corporate Housing
Corporate housing is another great option to consider if you are moving with a small amount of people. Corporate housing is often single-family apartments or condominiums. They are fully furnished and serviced, and the typical stay is around 2 to 3 months. But some providers may have a two week to one-month minimum set. They are easy to move in and out of, and they give you your own personal space while in between homes.
As you can see, there are many options for people choosing to take advantage of the market and sell right now. These options come in a variety of forms, sizes, locations, prices and qualities. But there is a good option for everyone and a good realtor can help you sort through your options and find what you’re looking for while taking advantage of the current market.
So if you’re considering selling, now is the time to get your home listed and do so! Please let me know if I can be of assistance as you ready yourself to start the process of listing your house, then finding your next place to call home. At M&D, we offer clients top exposure, higher than average sales price, and top-notch service. Please give us a call, and we can begin talking your next steps!