Question: I’ve heard that many homes are receiving offers the moment they hit the market and that sellers are finding it difficult to find homes to move into. What are my options?
Answer: The Nashville market is definitely hot. Multiple offers are common, but they are still the exception rather than the rule. When homes are selling too fast, agents and sellers alike need to take advantage of the time before the home goes live on MLS and after an offer is accepted very carefully. You must have a plan. Your agent can educate you on several options that may help to alleviate some transaction timing difficulties. Here are a few examples:
Contingency. Sellers may have the choice of using a contingency offer where they only agree to sell their home if they find another home to purchase. For obvious reasons, it can be difficult for many buyers to get onboard with this scenario. Most buyers will object to moving forward with inspections or appraisals until this contingency is lifted. A work-around might be to ensure seller-reimbursement of these fees should the transaction fail.
Lease-Back. You might negotiate rental agreement to stay in your property for a set period of time after closing. The challenges in this scenario are related to insurance, security deposits, maintenance, tenant laws, and lender timeline requirements.
Temporary Housing. You could consider moving into temporary housing for awhile – though you might have to call on your mother-in-law because short-term rentals are not common in this area. If you do find one, you will likely pay for the privilege. On the plus side, this scenario will put you in the strongest purchasing position moving forward as the offer made on your next property will not be contingent upon the sale of your first. Also, you will know exactly where you stand with regards to finances.
Buying New. Finally, you might consider investing in new construction for your next home in order to better align the sale timelines on both properties.
Before heading down any of these paths, it’s important to have a heart to heart with your Realtor, as well as your lender. If you are in a very strong equity position, navigating simultaneous sales will easier. When you’re financing position is less solid, your lender may have specific rules that restrict your options.
