You want to buy your Denver Dream Home while rates are low, but you don’t want to sell before you find the perfect place. Let me guess, you want to move, but you are afraid you will sell and then not find a new home in the tight Denver Luxury Real Estate Market? There are options!
Interest rates are low and you want to find your Denver dream home, but you need to sell your home first. You want to move, but you are afraid you will not find a replacement home! It can be frustrating and cause paralysis. You need to know there are options for you to get that home with the proper planning, expertise and execution.
The Denver Real Estate Market is Moving Quickly!
It is no secret that the Denver real estate market is hot! Low housing inventory has meant bidding wars and rising prices on many homes. In fact, inventory of available homes has dropped to historic lows in Denver and with many companies expanding here it is not likely to get better anytime soon. Many people are experiencing a ‘chicken and egg’ situation. They want to move and take advantage of rates, but do not want to sell until they find something great.
You May Have Options!
The tight, fast-moving Denver real estate market can also work to your advantage if you know how to make it work for you. The key is to know the market with your current home and the market for the home you want to purchase.
You may be able to negotiate a situation where you can rent back the property from the buyer for a short period of time while you search for a new home. With the normal closing period of 30-45 days and up to a 60 day rental (typically the longest allowed by most conventional loans) you could potentially have more than 3 months to search for and purchase your dream home. If your home is in a hot price range and area and marketed properly you could find yourself with multiple offers and the ability to choose a buyer with enough flexibility to allow you lots of time to search.
Make a Contingent Offer
Find the home you want and make an offer with a contingency to sell your home first. Ask for a short period of time to get your current home sold and then get it on the market. Some people are afraid this makes their offer weak, but if executed properly it can be a effective strategy that I have used successfully for clients this year.
Make a Non-Contingent Offer
Make an offer without the contingency to sell your current home. If your home should sell quickly this may be an option for you. It has more risks, but if executed properly can be a viable option.
Build a Bridge
There are some lenders who are offering ‘Bridge loans’. A bridge loan allows you to bridge the gap between the sales price of the new home before you have sold your current home.
Get qualified for the new home and your old home. You may be able to qualify for both mortgages allowing you to purchase before you sell.
Sell and Rent
If you don’t mind some temporary living and the uncertainty of finding your next home just go ahead and sell. Sell your home, put your furniture in storage and find a furnished temporary rental. It will be more expensive to rent short term, but you gain flexibility and you can always look at it as a short term adventure!
Planning and Execution are Key
Experience, market knowledge and planning are the keys to making these strategies or any Denver real estate purchase and sale successful. Everyone’s situation is unique. You need an accurate analysis and specific plan to ensure success. When you dealing with hundreds of thousands, or millions, of dollars in transactions having a full time knowledgeable professional who knows the risks and can execute a plan based on your needs and interests is critical. Proper execution can make the difference between success and failure and make (or cost) you tens of thousands of dollars.
Feel free to ask a local real estate agent about real estate in Denver, Denver communities, market status, etc.