After selling your home in a minimally stocked Real Estate market – becoming a born again buyer presents it’s own challenges.
Sell High…Buy Where?
Once the lawn sign switches from “for sale” to “sold” sellers morph into buyers and battle the same buyer traffic that just benefited them on their sale. However, this time as buyers they are IN the traffic feeling a lot like Frogger.
After all, the very dynamic driving up prices in hot seller’s markets is simple – there are fewer homes for sale. As a result, unlike in “normal” real estate markets, buyers don’t find it so easy to get a new home under contract.
From Seller To Successful Buyer – 4 Tips
Having a strategy leads to more success for home buyers – especially in tougher markets. In other words, sellers aware of what they face as buyers in a seller’s market tend to plan, prep and do better. Here are 4 tips to help buyers succeed:
1. Obtain full underwriting approval (not just pre-approval)
The majority of competing home-buyers are pre-approved and … only pre-approved. Stray from the herd by obtaining full underwriting approval. Sellers love fully approved buyers.
2. Be a Buyer before you are a Seller
If you qualify, buy before you sell. Recasts, HELOC’s and bridge loans provide great options when looking to buy first – sell second.
3. Have a Strong Down Payment
Try to come up with a strong down payment. In general, offers with higher down payments win out in ultra competitive seller’s markets.
4. Consider leasing your home back for 60 days
After selling, you can lease your home back from the new owners. Yes you will now be renters in your own home and the lord of your old land will be those buyers you sold to. However, leasing back gives you time for the new house hunt and creates some breathing room.