Buying and selling a home simultaneously is not an easy undertaking on any market. Forget the logistics and coordination that forms part of the challenges. Even the realtors or individuals who run home for sale in Palo Alto find it difficult because of the high risks involved. The chances are that somebody else could be the one selling your new home.
Buying a Home in the Sellers’ Market
As a buyer, understand the idea behind purchasing homes for sale in Palo Alto. You will be frustrated and find yourself in complex situations, knowing what happens in the sellers’ market that could rescue you.
In a typical seller’s market, you will not find many homes for sale compared to what you will find in a buyer’s market. Few homes for sale translate to not enough homes for every buyer. Your choice of finding a home that suits you is limited.
It is very common for buyers to compete with other buyers who want the same property. Sellers who have an option to choose from this pool of buyers may resort to desirability. According to the market trends, a buyer who is yet to sell a home is not as desirable as one who has no home to sell.
People may come together and open an escrow account, waiting to close the offer. You need the money coming from the escrow to buy a new home, if the money stays in the escrow account, no business for you.
Buying and Selling Simultaneously in the Sellers’ Market
You have an option of purchasing the home first. To prove that you can own both homes is to have at least six months of payment for both houses in the bank. Apart from that, you also need money for the down payment, including the closing costs. There is a choice of using the cash at hand or use lenders to help facilitate the buying process.
Renting after Selling Your Home
The seller’s market that enables the homes for sale in Palo Alto makes it possible for a seller to rent back after selling in a buyers’ market. This option gives you a chance to settle for a while as you look for another home. Meanwhile, you lose the power to sell the house because it is already out of the market.
Selling then buying is an option that looks to be less stressful because of the little risks involved. The good thing about this is that you will have an idea of how much money you will earn from the sale. The downside is moving out when the deal is closing. Some homeowners will opt to stay at a hotel or rent a home on a monthly agreement when the sale process is going on.
When your home is ready to close, you may want to delay the closing by writing a counter offer but with no power to sell. Once the realtor approves the buyer, be sure that the buyer will perform.
All these options ignore the fact that you could be a lucky agent in the homes for sale in Palo Alto. You only need to be weary in the seller’s market where the odds may not favor you all the time.