The real estate market is intense right now with very few homes available for sale in the Vail Valley. When contemplating a move, buying and selling at the same time can be complicated. Even with a balanced market, this can be difficult! If you are trying to buy and sell at the same time, the recipe for success in a healthy market is to first get your house ready to list. This means decluttering, cleaning, touch-ups, repairs, etc… The next step is to tour different properties.
Ideally, you would find your next home, get under contract, and list your current home the next weekend. You would try to shore up dates so that you can close within days, if not on the same day, for both closings. But this doesn’t always happen and every situation is unique. The most important thing is that you have a knowledgeable and experienced agent by your side who can advise you throughout the complicated process. Let’s take a look at how buying and selling a home at the same time works and what your options are.
Buying and Selling at the Same Time: Selling Before You Buy
Selling before buying removes some financial risk. It allows you to free up your equity in the home. A downfall to selling before you have purchased your new home is that you will be in limbo between selling and moving into the new home. You will want a plan in place for where you will live during this time. Your Realtor could negotiate what is called a Post Close Occupancy that allows a seller to stay in their home after their close date.
Some buyers will ask for a deposit or for rent from the seller who is staying in the house post-close. It is very common for sellers to ask for this if they are moving out of state or if they cannot get into their next home until after close. The state of Colorado will allow for up to 60 days in the home post-closing. If this is not possible, you may need to find a short-term rental. Another option would be to add a contingency to the contract that stipulates that you find and go under contract on a home by a certain date or you will have the right to terminate the sale of your home. These can be complex and delicate situations so you definitely need an experienced and trusted real estate agent to help you through this process.
Buying Before You Sell
If you’ve already found your next dream home in the Vail Valley, you might not want to wait to sell first. This option can be more difficult, especially if you don’t own your home free and clear. Working with your real estate professional as well as a top-notch mortgage broker or lender is important. Working through different scenarios with your mortgage professional can help you strategize. You may also be able to use a ‘bridge loan’. A bridge loan is a short-term loan that taps into the equity of your home.
If you’ve found the perfect home but haven’t sold yours yet, you can still put in an offer making it contingent on the sale of your home. To increase your odds of getting your offer accepted, you will need to show that your home is actively listed and on the market. However, in the current current market, many sellers are not accepting contingent offers. Unfortunately, as a buyer, you are not competitive unless you are non-contingent. I’m seeing this all over the market currently, so you would not be the exception if you had to list and ask for a post-close occupancy to then have time to find your new home, get under contract, and close.
No One Right Answer
Bottom line, there are all sorts of ways to go about the buy-sell process. An experienced real estate agent is essential because they can help negotiate with the other agent and make sure the contracts work in everyone’s favor. The last thing I want to see is for a seller to have to move their belongings into storage and their family into a short-term rental. This does happen, but with a skilled Realtor by your side, it’s much more likely that you will have a seamless buy/sell experience.
How Can I Help?
I hope that you’ve found this information useful. Please reach out to me if you ever want to know more or if you are interested in buying or selling a home. I want to provide my clients with interesting and up-to-date information so they can make informed decisions. If you think that my expertise and positive attitude might be of service to you don’t hesitate to reach out and contact me.
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Coldwell Banker Global Luxury Specialist
Coldwell Banker Distinctive Properties