There are lots of great reasons to sell your perfectly good home before you buy another house.
If your in-person dream job is more than a few dozen miles away, it’s likely you’ll be moving to another city or another state. But before you settle into just any new neighborhood, you may want to get to know the area a little better. Renting is a great option that allows you to try before you buy while living comfortably in a community without locking into another long-term mortgage. In some cases, renting can be more affordable than buying. After all, there are hidden costs of homeownership.
New Home Construction
When building your dream home can require up to a 12-month commitment for construction, most people can’t wait until their new home is completely finished before putting their current house on the market. Depending on your current home price, size, and attractability, there may be months between your move-out date and your new move-in date. A short-term rental in your desired area is a great way to bridge the gap.
A Seller’s Market
In June 2020 despite a global pandemic and crippled job market home sales soared by 21% in the United States.
When the real estate inventory demand exceeds what’s available for sale, or there are more buyers than sellers, a seller’s market is a perfect time to sell your home. With the potential for multiple offers or a bidding war, sellers can negotiate the highest value for their property.
So if you’ve made the decision to sell your primary home but are waiting before your next purchase, here are some of our best preparation tips to make the Most of Selling Before Buying
Create Your Dream Home Wishlist
One of the best ways to secure the home of your dreams is to build your wishlist. From style to location, whether you’re inspired by your favorite HGTV show, Architectural Digest magazine, or your online house hunting, when you can compare listings to your dream list, you’ll know if your perfect home is currently on the market for sale, or you’ll have to build it yourself.
Research New Neighborhoods
Part of finding the perfect home is living in your ideal community. If you can, there may be an apartment or an apartment rental home in the area so you can get a real feel of a neighborhood before committing to it long-term. You can use web sites like Zillow or Niche to gather insight into the cost of living, schools in the area, parks and recreational areas, and other amenities you may find useful.
Get Help From A Local Realtor
Real estate listing agents can come prepared with lots of important information about your upcoming selling experience including recent comparable sales in your area. When you subtract your current mortgage payoff amount and the commission fees from your sale price, you’ll have a good indicator of how much money you selectively put down on your next home. Simply put, realtors can help you price your home to ensure it sells in your preferred timeline and for maximum profit.
Don’t Forget Storage
If you’re going from a house that you own to a short-term rental, there’s a very good chance you will need temporary storage space for spare furniture or other non-essential belongings. There are a variety of storage companies that offer fairly priced space without a long-term lease commitment. If you’re not sure how much space you’ll need, simply calculate your current home square footage and deduct the room furniture you’ll be taking to the rental. Prices vary by provider and storage type including climate controlled, 24/7 access, and added security options.
Townhouse, Condo, or Apartment Rental Home
Short-term rentals come in a variety of floor plans, square footage, and prices. For some, when they think about “renting”, they assume they’ll be living in a cramped second story walk up building with common laundry rooms and aged appliances. But this doesn’t have to be the case.
While many apartment complexes include multiple flights of stairs, noisy neighbors, and limited or no assigned parking, there are next-generation apartment rental home options including Redwood that offer single-story, pet-friendly, in-home laundry space, spacious open floor plans with private entrances, attached garages, and private patio space.
Even more good news: Redwood offers a variety of apartment rental home floor plans, the majority of which have flexible home office space, vaulted ceilings, walk-in closets, and a large kitchen pantry.
See for yourself: Schedule a tour of any one of Redwood’s properties to see if the “Redwood Advantage” is right for you