Making Sense of the Double Move
Despite a slow-down in purchases during the previous quarter that should have increased our current supply, the Metro Denver housing market at the beginning of 2014 had fewer homes for sale than the same time last year.
Given the lack of inventory, it’s important to carefully consider how to approach a move before going on the market. While selling property has historically been more challenging than buying, because our market has shifted, finding a replacement home has become a larger hurdle than in the past. To increase your chances of getting into your next dream home and lower your chances of losing out to another buyer in this competitive housing market, we recommend that you prepare for the possibility of a double move: completing the sale of your home, moving into temporary housing and then moving a second time into your new purchase.
The good news is that there are benefits to temporary housing while you look for a permanent residence. For instance, you’ll know exactly how much money you have available for your upcoming purchase. You may also feel relieved of the pressure to buy a less-than-ideal dwelling because the hard deadline to do so has been removed. “Buyer’s remorse” can easily become a reality if you are rushed during your decision-making process.
There are multiple alternatives for making a double move, and The Steller Group can help you make the most of them! Some options:
- — Rent back from your buyers: We can negotiate extra time in the contract so that you can stay in your current quarters while you search for your replacement. Be aware that many lenders won’t allow a rent-back for more than 30 days following the closing, but this could save you from a double move.
- — Reverse contingency: We can negotiate the sale contract to be contingent on you finding a replacement home. While this scenario is safer for the sellers, buyers may or may not be willing to take on that risk.
- — Stay with family or friends: A great alternative if possible! For longer-term stays this could prove tricky, but it doesn’t hurt to explore this prospect.
- — Extended-stay hotel suites: These suites are more spacious than a standard hotel room. Many have a workspace with internet, a kitchen, separate bedrooms, laundry, amenities, and special rates for 30 days or more.
- — Short-term apartment rentals: In this scenario, you would have to pay for two moves, unless the apartment is furnished. A short-term rental lease is more expensive than a long-term lease but it is a good option if you need multiple bedrooms, or are limited to a certain area because of your commute or a need to stay in a particular school district.
- — Short-term home rentals: In a market where the resale inventory is tight, the rental supply usually follows suit, and Metro Denver is no exception. However, if you can find a rental in the area you desire, there are a lot of benefits: the longer lease time-frame will give you even more flexibility in finding your “forever” home, and there will likely be a yard in which the kids and pets can play, nearby schools, and community amenities.
Something to keep in mind: the days of all-time low interest rates are numbered, and prices are projected go up again this year. There will probably not be a better time during the next 10 years to buy than now. Living with temporary housing may seem inconvenient and even arduous, but could be well worth your while. The Steller Group of Keller Williams Realty is a full-service real estate firm. In addition to our extensive network of professional service providers, we can alleviate your stress and make your sale and moving process a success. Give us a call at 303.539.5228 or email Info@StellerRealEstate.com to learn more about the services we provide!