I ran some quick numbers on all 2022 closings for condominiums and single family homes in the entire Park City Multiple Listing Service. The median days on market was 4. The average days on market was 44, skewed higher by some pre-construction listings that lingered on the market. The point here is that if you are planning on selling your home right now, it’s going to sell fast. Some clients must close on the home they are selling before they can purchase the replacement home. So how do you avoid becoming “homeless”? Here are some strategies that we have used with our sellers.
- Negotiate a Lease Back. We were able to negotiate a free 6-month lease back for one of our sellers. When I recently purchased an investment property, my offer contained a free 2-month lease back for the seller. This is a great strategy no matter which side of the negotiation you are on.
- Purchase new construction. The timing on this can be a little tricky with many construction delays, but it’s possible to coordinate closing on the home you are selling with closing on the new construction. You negotiate buyer possession of the home you are selling after closing and coordinate the dates with your move.
- Move into an AirBNB, motorhome, or other temporary housing situation that is lined up before your home goes on the market. One of my clients lived in their motorhome for about a week with their 3 kids while in between homes.
- Buy lower priced, temporary housing that you will turn into a rental. This is what we did when we sold our home last year. We moved into a furnished condo and lived there for 10 weeks while waiting for our new home to be completed. That condo was subsequently turned into a vacation rental and we are happy we purchased it instead of renting. My partner Justin’s parents did the same thing. They ended up staying in their condo much longer than expected due to construction delays.
- Use “bridge” financing to purchase your new home before the other home sells. If you own stocks, there are some easy methods of borrowing against your portfolio and then paying this money back quickly after your home sells.
The sales process we use to market and sell homes has not changed. We do not cut corners on marketing or showings. What has changed is the time period for these activities is compressed into a few days instead of a few months. Wading through multiple offers, inspections and the other activities involved with a home sale are very stressful. You don’t want to add to that stress by wondering where you will live after your home closes.