Market Gridlock

Real Estate Agent with ReMax Sun Properties

Wow! All of these wonderful houses available at bargain prices! The interest rate hovers just above 5%! What a perfect time to sell your house and buy a bigger house or a smaller nest. But how do you do that with market gridlock?

When money grew on trees and all you had to do was sneeze to get a loan, you could list your house and before the ink was dry on the paper, a realtor brought an offer. With most loans today requiring 20% down (some up to 30%) and strict qualification guidelines, buying a house before you sell yours is challenging.

If you don’t have the down payment in cash, how can you make a qualified offer for that house you would love to buy?

There is a way to sell a house and buy another in this credit tight market.i It’s a contingency offer that not only offers to buy the house, but buys the time to buy the house. It’s satisfies the seller’s need to feel financially secure and gives the buyer realistic time to get her house sold.

If time is critical for the seller and there is urgency to sell, this offer will not meet the seller’s needs. But if the seller is in a position to gamble with time and be compensated for it, this can be a win/ win.

The gridlock will open when we appreciate that this is not the market it was and to survive it, we need to adapt to it.

Here in Fountain Hills our market seems to be loosening a bit. There is less inventory & more houses selling.