Selling in a Tight Market

"I know I could sell, but then where would I go...?"

I hear this phrase frequently in the current market. Low supply, high demand, and shifting interest rates are creating stressful conditions. Some sellers feel stuck. I've helped buyers and sellers successfully navigate changing real estate markets since 2002. I'm committed to providing clients with personalized service, data-driven market insights, and expert guidance.

Let's talk about your plans to sell and which of the following options is right for you.

Contingent Purchase

Pro - Use proceeds from the sale of your current home directly for the purchase of your next home. There are cancellation options if your current home doesn't sell.

Con - Not desirable to sellers and less competitive in multiple offer situations. May have to make a higher offer to get a seller to accept. If a seller accepts, you may feel pressure to price your home lower to encourage a fast sale. Your contingent offers can be called by a seller for any reason, such as another buyer submitting an offer, so until you remove the contingency it's not a 'done deal'.

Contingent Sale

Pro - Get an accepted offer on your next home before committing to selling your current home. Allows for better alignment of closing dates.

Con - May not be acceptable to some buyers, but more likely in times of low supply.

Separate the Sales

Pro - Better understanding of finances/sale proceeds. Takes the urgency out of your search. Avoid contingent offers. More attractive to next sellers.

Con - Two moves. May need temporary housing during the transition.

When the Stars Align

Pro - Minimize disruption with one move. You can choose to use proceeds from your house sale for the next purchase, or not.

Con - In times of low supply, you may have to devote more time and energy to finding the next house and compromise on home features. The offer on your next home isn't contingent on the sale of your current home so you're going to have to qualify for both mortgages. Even though you're not selling contingent, you may feel pressure to price your home lower to encourage a fast sale and keep both sales on track

Least Disruptive

Pro - You can be more selective on home features. If your next home needs updating, you can stay in your current home until work finishes. Move out before listing since having a home on market is extra work.

Con - May need to qualify for and support two mortgage payments.

Talk to a Lender

Pro - A lender can review financial programs that may give you more options. Edina Realty's new QuickBuy program allows for a guaranteed/quick purchase and even has rent back provisions if you need to stay in the home a little longer after closing.

Con - These programs may have special requirements or higher rates/fees.

Status Definitions

For sale: Properties which are available for showings and purchase

Active contingent: Properties which are available for showing but are under contract with another buyer

Pending: Properties which are under contract with a buyer and are no longer available for showings

Sold: Properties on which the sale has closed.

Coming soon: Properties which will be on the market soon and are not available for showings.

Contingent and Pending statuses may not be available for all listings

Evan and Jim Hermodson