Charleston, SC Posts

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How do I sell my home and buy one in a slowing market?

It's no secret that the Charleston real estate market has slowed down considerable since the days of 20-30% appreciation rates that occurred in 2003-2005. For seller that have outgrown their home, this dilemma in our market presents a problem for sellers trying to coordinate these 2 events. Maximizing the sale of their current home in order to take the profits to purchase their new home becomes problematic in a market where sellers are issuing price reductions regularly.

If you have enough equity in the home you are selling, you can list your price below other comparable properties selling in your neighborhood to attract more potential buyers. The more potential buyers you have, the more likely your home will sell sooner than later. Once you have an offer; You can opt to sign the contract and close, and bank the money. You can put your belongings in storage and rent for a period of time until you find the right deal. Or you can start looking for your next home...and place an offer contingent upon the closing of your current residence. Several problems arise in this scenario. A) There's no guarantee your home will close. B) If you put in the offer contingent on selling your home, in some way, it could jeopardize the negotiating power.

You can opt to sign the contract for the purchase of your home with a contingency clause stating that the buyer grant you a certain amount of reasonable time (30-60 days) to find another home and place a contract on it, otherwise the contract is null and void.

Most seller do not want to move so many times so the problem of juggling selling the home and purchasing the next one is large source of potential stress for most families. Can you find something that suits your needs? What if the home doesn't close? What if...x? What if...y? These are risks that you will take. Be careful not to get into the situation of settling on a home because of your time contraints. Develop a contingency plan for you and your family in the event it doesn't work out how you planned. Consult a real estate professionally to guide you through the process.

Michele Reneau, ABR, GRI, CRS

www.CharlestonRelocationExperts.com

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Comment balloon 0 commentsMichele Reneau • September 26 2007 09:35AM

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