For many people trying to sell their homes this year, the stress doesn’t come from the sale, but rather from trying to find a new property to move into, says a new Redfin survey of more than 800 real estate professionals.
“It’s a seller’s market, but the catch is, most sellers need to buy as well,” says Eileen Lorway, a Redfin real estate professional in the Boston area, on the well-known low inventory crisis that’s enveloping U.S. real estate markets nationwide.
“This is a conversation I have with many clients at our first meeting,” Lorway continued. “We discuss options like ‘seller to find suitable housing’ contingencies for the sale contract, ‘purchase contingent on sale of current home’ options for the buy offer, rental options, stay-with-family options, and bridge loans. Sellers who are buying need to think outside the box a little bit. It’s not easy, but we often do end up closing on sale and purchase on the same day.”
Lorway says that she tries to encourage her clients to sell their homes first, before looking for a home to buy. While that may mean that some need to find a temporary housing solution, it gives them the time they need to find their dream home, rather than rushing to buy the first available property.
“They’ll know exactly what they’ll have to work with financially, and won’t end up adding unnecessary contingencies to offers, which will give them a better chance to get the home,” Lorway said.
Home inventories have crashed to record lows in markets across the country. However, demand from buyers remains high. According to Redfin’s survey, around 57 percent of real estate professionals have been involved in bidding wars with 10 or more individuals bidding on a single property.