Do you have a house in Tacoma that you’d like to sell so that you can buy another house in Tacoma? What you’re about to do can be complicated, but it’s totally doable.
Join Tacoma real estate agent Marguerite Martin as she talks to her colleague Amanda about the different ways that people selling their homes in Tacoma can manage selling and buying at the same time in the wild 2021 Tacoma Real Estate Market. (Hint: Buying contingent is probably not going to happen!)
People call Marguerite all the time saying they’re ready to sell their home of 5-6 years and buy a different house in Tacoma. In this video, Marguerite and Amanda are discussing a couple of different ways that people in Tacoma list and sell their house and buy another house in Tacoma. (Get ready for some real talk!)
As Amanda points out, if you’ve been through the buying and selling process before, you might feel like you’ve got a solid handle on the situation. However… things are different now. Everything about this market is different! Having a strategy and a plan is everything.
Scenario #1: Take Advantage of Rent Back
A lot of people who are buying another home in Tacoma right now think that this is how their buying/selling experience will go: They’ll put their house on the market, their house will sell, they’ll buy their next house, and then just move out of their old house into their new house.
Many homes these days sell so quickly and for multiple offers, so you might be able to sell your house very quickly. However, it might be challenging to buy your next house.
Amanda’s advice for folks who are going to be listing their house and buying another without any gap in between is to consider doing rent back. Rent back offers flexibility, and could be a great option depending on your situation.
What is rent back?
This is when a buyer purchases your property, you close on it, and then you rent your property back from the buyer for up to 60 days. Buyers are allowing this right now because it means they can win the offer and be able to compete. During the 60 days of rent back, you’ll hopefully be searching for a property, buying a home and then closing!
Scenario #2: Sell Your Home, Then Rent a Place For a Few Months While You Buy Another House in Tacoma
In this situation, you’d list and sell your home, move into a rental (or maybe a family member’s home), and while you’re in a temporary living situation you’d be searching for your next house to buy. The big advantage here is that you already have your money from the sale of your home, and you’re not counting on your home’s buyers and therefore having to make a contingent offer. This situation is a lot riskier to sellers, and it will make your offer much less attractive to sellers. Making a non-contingent offer can come with some extra challenges (it’s probably inconvenient to have to move again!) but it can give you a big advantage in this market!
Can’t you buy a house with contingencies?
For people who may have listed and purchased property before, you might be wondering why we aren’t including contingent offers as a real option right now. In the past, this is pretty much always how people have bought and sold homes at the same time. These days, it’s extraordinarily rare for a contingent offer to be accepted. This is because it’s riskier for the seller to accept your offer. So if anything happens with your buyers financing for your property, this means the seller can’t close on their house, or their new house, etc.
You just need to choose the solution that’s right for you, and working with a real estate agent who can explain and guide you through all of the options is crucial.
Marguerite Martin is a Tacoma real estate agent and creator of the website MoveToTacoma.com, a resource for folks in and outside of Tacoma finding their place in the city of Destiny.