Planning to Sell Your Home? Where Will You Go?

By
Real Estate Agent with eXp Realty of California, Inc. CA DRE #01490977

Planning to Sell Your Home?

Where Are You Going to Go?

 

There’s a lot to think about if you are planning to sell your Carlsbad home. This is true whether you are an experienced seller, or selling for the first time.

 

Let’s start off with an important and practical question if you are planning to sell. Where will you go?

 

SOME KEY QUESTIONS TO CONSIDER

Of course this has always been an important question for home sellers to consider, and plan around.

Do you plan to buy a replacement home, and if so when?

Are you planning to relocate somewhere else?

Do you plan to rent?

Do you already have another home you can move to?

Are you moving in with someone else, e.g., a friend or family member?

 

Because of the housing market conditions this becomes a much more complicated issue, depending on your personal situation. The reason? Homes are selling quickly these days, in general.

 

For example, in Carlsbad for February 2022 the average time on the market (DOM) was only 13 days. Furthermore, 56% of the homes went pending in 1 week or less.

 

In neighboring Oceanside it was 15 days and 63%. In San Marcos it was only 9 days and 67%. And it was only 8 days and 57% for Encinitas.

 

The bottom line is homes are selling very quickly, often within a few days after hitting the market, and in more cases than not over the list price…that’s good news for sellers. However, that means you will need to vacate your home fairly soon after you list it, since the buyer will likely want to take possession after closing, unless other arrangements are made.

 

SELLER OPTIONS

The answers to the question “where will you go?” can depend on personal desire, what can be negotiated with your buyer, and your financial situation.

 

If you can afford to buy another home without selling, or closing on your sale, that provides you with some flexibility. Keep in mind, however, that as a buyer you, too, have to deal with the limited supply, high buyer demand and competition. However, most people cannot afford to do this. You should of course check with your lender to see if this is a possibility for you.

 

If you have another place where you can move that makes life easier - family, friends, a rental you own, a second or vacation home, etc.

 

But if you must close on your current home in order to buy a new place it becomes much more challenging.

 

Sellers often ask if they can make an offer on a new home contingent on selling their home. In a less competitive market this was often feasible.

 

However, quite honestly that’s pretty tough to do these days because of the competition. An offer that is contingent is not nearly as competitive as an offer where the buyer doesn’t have to sell. Or already has done so. It’s possible, depending on the offers submitted and the other seller’s personal situation, but you certainly can’t depend on it as a solution to your dilemma.

 

Timing the closing of your home and buying another, because of the competition, can be pretty tricky. This is especially true in certain price points, and depending on your particular housing market.

 

One possible solution seen more often in this market is a rent-back (may be called something different in your area). This is when the buyer and seller agree the seller can remain as a tenant after closing for an agreed-upon period of time.

 

The time frame can vary but typically is less than 60 days where the buyer has a loan. Terms and conditions for the rental (e.g., utilities; other fees, if any) are negotiated between the parties. It can work for some buyers to delay possession, but not all. They may, themselves, need a place to move right away.

 

It’s still important to have a contingency plan, however. What if you cannot find a home to buy during that rent-back period, or your offers are not successful? You will still have to move out per the contractual agreement.

 

Keep in mind rent-backs can vary by market and jurisdiction, so be sure to discuss the possibilities, paperwork and contractual terms, and the pros and cons, with your listing agent as you get started with your plans to sell.

 

SELLER RESOURCES

As you start planning for the sale of your home here are some useful resources:

Spring 2022 Home Seller Guide (click to download)

Home Selling Tips and Advice (video series on my YouTube Channel)

 

More importantly, how about a pre-listing discussion about your concerns, plans. personal situation, and timing? Please reach out to me at (760) 840-1360 if I can be of assistance.

Posted by

Jeff Dowler, CRS
Certified Residential Specialist / Realtor®


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Comments (54)

Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Jeff, this is a WOW post, chock FULL of great information for today's crazy market! Such sage advice about having to sell to buy - find an alternative. Most times, you need to have plans- B AND C! We have gotten the 90-day rent back (being such a sellers' market). Oftentimes 60 days is not enough time for their dream home to hit the market AND win in a bidding war. Plan-C may very well be the 60-day rent-back, then an Airbnb! Whoever thought we would be in a market like today? 

Mar 29, 2022 10:12 PM
Erik Hiss
Keller Williams Capital Partners Realty - Worthington, OH
You can trust me for all your real estate needs!

I can't even imagine the simultaneous closing in a market like this... but I guess I haven't tried either. Homes are so hard to buy that it's super difficult without a home to sell!

Mar 30, 2022 05:47 AM
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Jeff - upfront preparation is always important in real estate.  During hyper-competitive times, it becomes critical.  

Mar 30, 2022 06:25 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Thank you Laura Cerrano 

Hi Debe Maxwell, CRS  - it's clear sellers need to have options available to them and to be flexible. And each situation is different.

Jeff

Mar 30, 2022 08:10 AM
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Indeed! There is no easy-to-follow, one-size-fits-all template in today's market, Jeff!!

Happy Wednesday!

Mar 30, 2022 08:15 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

So true Erik Hiss  It's certainly a challenge if you are selling and also want (or need) to buy. Having some options and being flexible with your planning is key!

Jeff

Mar 30, 2022 11:12 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Excellent point Michael Jacobs  Selling, or buying, without planning could be doomed, or expensive!

Jeff

Mar 30, 2022 11:15 AM
Beth and Richard Witt
Long Island Cash Home Buyer - Center Moriches, NY
Long Island Cash Home Buyer 516-330-6940

Excellent advice to give thought to before putting your home up for sale.

I love the rent back but it is not always easy to get and of course, having a temporary place to live if you find yourself without a new home.

 

Mar 30, 2022 02:16 PM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Thanks for stopping by Beth and Richard Witt  There are certainly some potential challenges with rent-backs. And not all buyers can accommodate (which of course can make them less competitive these days).

Jeff

Mar 30, 2022 05:19 PM
Ben DeHaven
Haven Realty & Investments - Winter Haven, FL
Proudly serving Winter Haven & Lakeland, Florida

Hi Jeff! If one could successfully answer that question for every potential seller they would do very well for themselves. I probably have 5-6 potential sellers that would sell if they felt they wouldn't have to go homeless for more than a few days.

 

Mar 31, 2022 07:04 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Thanks, Ben DeHaven I have several sellers in the same situation, and multiple buyers who are facing challenges on the other side, with rising prices AND now with rising interest rates.

Jeff

Mar 31, 2022 09:07 AM
Wendy Rich-Soto, Realtor/Broker Associate
Keller Williams Realty, South Bay - San Pedro, CA
Getting you to your next with a zero failure rate!

It is really a challenge but with proper expectations all around it can be done.  It is a little dance trying to initially get the buyer of a clients property to expect to wait and then go through their process until all contingencies are removed so the seller can be non-contingent when writing offers for their replacement property.  But we've done it several times in this crazy market and it can be done.  

Mar 31, 2022 10:18 AM
Anna Banana Kruchten CRS, Phoenix Broker
HomeSmart Real Estate BR030809000 - Phoenix, AZ
602-380-4886

Hi Jeff we have a huge demand for homes, an extremely low inventory and prices keep going up and up and up. I have had this conversation with many clients this past year or so and what the realities are in our market.  Some have moved forward, sold and bought and others have chosen to stay put for now.  We'll see what happens...meanwhile as I looked at our market report this morning - prices are up again.  It honestly seems kind of nuts here.

Mar 31, 2022 11:07 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Hi Wendy Rich-Soto, Realtor/Broker Associate 

You are right...it CAN be done. But it's essential that sellers understand up front what the potential issues are, and the options available to them. Planning is essential.

Jeff

Mar 31, 2022 11:27 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

You are so right, Anna Banana Kruchten CRS, Phoenix Broker . I am starting my market reports for March and expect to see plenty of changes since February. It will be interesting to see if the interest rates have a noticeable impact - no doubt some buyers no longer qualify for what they may have a few weeks ago and with rising prices buying power may have shifted.

Thanks for stopping by!

Jeff

Mar 31, 2022 11:36 AM
Anna Banana Kruchten CRS, Phoenix Broker

Jeff I'm not seeing or hearing that the interest rate hikes are making much of a difference in our market (except for 1st time home buyers , of course).  Most folks have a lot of cash on hand and that's been going on for several years now

Mar 31, 2022 03:54 PM
Jeff Dowler, CRS

Hi Anna Banana Kruchten CRS, Phoenix Broker  I think that's true here as well.

Apr 01, 2022 10:45 AM
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

This is good information to share.

We are among those who should sell our home but we do not have a place to go.

Apr 01, 2022 07:31 AM
Mike Warfel
Mike & Rita Warfel Real Estate LLC - Avoca, MI
Associate Broker

That is a great post, you've high lighted the problems and offered a few viable solutions. All good advice for the brave sellers in this chaotic market. Good luck this year, the competition is  wickedly fierce. 

Apr 01, 2022 09:55 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Hi Roy Kelley  - I suspect this is true for many.

Thank you Mike Warfel  It's a challenge everywhere I think.

Enjoy the weekend!

Jeff

Apr 01, 2022 10:46 AM
Charita Cadenhead
eXp Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Jeff Dowler, CRS this is absolutely invaluable information.  I sold my house and moved into temporary quarters. I plan to buy again in a year or so.  Hopefully next year.

Apr 02, 2022 05:59 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Hi Charita Cadenhead Thank you for stopping by and for the kind words.

Best wishes to you!

Jeff

Apr 02, 2022 09:12 AM