Coordinating Your Next Move
Ask Phyllis is a blog series of frequently asked real estate questions. Have a question about real estate? Email us here
Dear Phyllis,
After reading your column, for years, I have my own real estate dilemma for you. Ten years ago I bought a small (800 square foot) home. I was single and just happy to own a place of my own. Not too long after moving in, I married and had twins. So, now we are living on top of each other and it’s adversely impacting our marriage. I keep reading that it is very difficult to find a home because they are selling so quickly. I am afraid if we sell our home we won’t be able to find another. Do you have any suggestions?
Pinkie
Dear Pinkie,
Your housing situation is definitely impacting your quality of life and you need to make a change. You can and should make a move. Here are some thoughts:
1) Rent your home and then find another larger home to rent. You can become both a landlord and a tenant.
2) Contact a real estate agent. Determine how much your home will sell for in today’s market, how much equity you have and how large of a loan you can qualify for. You may be in a position to sell your home and buy another.
If you do decide to sell, your Realtor® will likely elect to use some precautions in your contract which will hopefully avoid the need for you to move twice. You may decide to sell your home contingent upon you finding another home or you may opt to rent it back from the buyer after closing.
1) Selling your home contingent: It’s quite simple, the purchase contract will state that it is subject to you finding a home of your choice within a specific period of time. Therefore, if you don’t find a home, you are not obligated to complete the sale.
2) Selling your home with a rent back: Negotiate with your buyer the option of you renting back the home from them for several months. It’s not easy being a contingent buyer in today’s competitive real estate market. By closing escrow and then renting your home you are no longer a “contingent” buyer and will be in a stronger negotiating position.
