If you have ever thought about selling your current home and purchasing a new one you may have wondered if homelessness was in your future.
Traditionally the sale of a current home provides some of the funding that is being used towards a new home, but in order to get that funding the home must be sold. This concept is a frequent concern that we see from a lot of our sellers and it causes a lot of unneeded stress and sleepless nights. I say unneeded because simultaneous closings are a lot easier than you would think, if you hire the right REALTOR.
There are many ways that closing can be adjusted to help Buyers and Sellers depending on the situation.
Simultaneous Closing: A Simultaneous Closing occurs when Sellers close on their property and within a couple of hours, they also close on their new one. The process takes strict coordination from all parties involved but is easy to do. As a Realtor, when I am looking at a simultaneous closing there are a few things that I push for. First, I negotiate title companies so that both transactions are being handled by the same person. Less changing of hands and a shorter paper trail lead to a shorter waiting process between the two closings. Next, I work with the Lenders on both transactions to see if we could fund prior to the close of escrow date. If the funds are available the evening before or first thing in the morning the process can be sped up to ensure that both transactions will be funded and closed before the end of the day.
It is inevitable that you may be sitting in the U-haul in front of your new home for a short period of time, but after a quick bite to eat and “how to unload the truck” strategizing your keys could be ready!
Pre- and Post Possession: Pre-possession is an option for Buyers who must be out of their home sooner than close of escrow, but don’t have an alternate place to stay. Negotiating a Pre-possession agreement includes Buyers paying a daily or weekly rent for the occupation period prior to closing. Post-Possession is the complete opposite. Sellers who close on their listed home days before closing on their new home may want to stay and pay rent until the time has come for them to move. Both options are common and include separate contracts that protect both parties. Realtors have shied away from these agreements in the past, but recently we are seeing them more frequently.
An Alternate Place to Stay: For those who don’t want to worry about an additional contract and daily rent or are stuck in a long escrow on a new home have the option of staying elsewhere. Hotels, Short-Term Leases, and staying with friends and family are all options.
If you are purchasing a new build home, they require you to have your home sold within 60 days of signing your new construction contract. Unless you are renting, this puts a lot of new homeowners out of a place to live. A common remedy for this situation is a short-term lease. As of lately small apartment communities like Christopher Todd have been popping up across the valley. These communities promote their short-term availability and give their tenants the feeling of living in a smaller home without the large budget.
If you are considering selling your current home but are worried about your living conditions, please do not hesitate to give me a call or shoot me a message. I would be happy to go over these options in depth and find the right opportunity for you and your family.