Correctly priced and marketed homes are selling faster than tickets to Hamilton on Broadway. That’s because inventory levels of existing homes are at a 20-year low. Have you been thinking about selling your home but haven’t found your dream home yet? Maybe you’re scared to death you’ll be sleeping on mom’s couch again when your home sells within hours?
Besides moving back in with your parents, Eric Forney of The Forney Group says you may have other options:
1. First Right Contingency
“This is the holy grail of home buying today,” Forney says. “A First Right Contingency offer affords you the option of trying to get your home sold before your dream home finds another buyer. If your home sells within an allotted timeframe, you become the primary buyer of said dream home. If it does not, you may need to start over with your home search or extend the aforementioned timeframe.“
2. Post Sale Possession
Given the current market, Forney says sellers are often asking buyers for delayed possession to help extend the timeframe for finding their next home.
3. Bridge Loan
If you’re in a strong equity position on your current home, you can leverage that equity to be used as a down payment for your next home.
“Getting a bridge loan means you’ll be paying two mortgages for a short time, but it also means you’ll be throwing your back out in no time moving that sleeper sofa into your new home,” Forney says.
4. Hard Money Loan
If you are unable to qualify for traditional forms of financing, a hard money loan may be your last resort. Hard money loans come with high interest rates and short repayment terms.
“Unlike conventional financing, hard money loans are backed by the equity of the home, rather than the worthiness of the buyer,” Forney says. “You should be cautious of hard money loans backed by a guy named Little Tony or cousin Sal.“
5. Guaranteed Buyout Option
The Forney Group offers a guaranteed sale with a promise.
“If your home isn’t sold within a predetermined timeframe, we’ll buy it for cash,” Forney says.
While going this route often results in a reduced sale price, it may be worth not missing out on the home of your dreams or owning multiple homes.
What makes the most sense for your unique selling situation? Eric and The Forney Group can find a unique solution for you. Give him a call today at 317-519-4313 or visit them online at Forneygroup.com.