What’s the number one concern I’m hearing from homeowners in Roseburg thinking about selling their house in this crazy hot real estate market we find ourselves in? Well, where am I going to go if I sell my house? Unless you are relocating, you have another home or a nice RV, you’re probably asking yourself the same question.
What’s the number one concern I’m hearing from homeowners in Roseburg thinking about selling their house in this crazy hot real estate market we find ourselves in? Well, where am I going to go if I sell my house? I mean, you’re probably asking yourself the same question if you’re out there thinking about selling your house. That’s a legitimate question and I get it. I’d probably feel the same way. It’d be a fear of mine if I was selling my own house.
My name’s Troy Schuyler, licensed real estate broker with The Sky Team at Keller Williams Realty here in Roseburg. I got a few different options that I think might just answer that question and give you the peace of mind to go ahead and get your house on the market and find your buyer.
Option number one is listing your property with a contingency. In other words, you’re listing your property with your real estate broker, like you always would, but you have built into the listing and any buyer that looks at your house knows before going, that the close of escrow, the sale of the home, is going to be contingent on or it’s going to be subject to the seller finding a suitable replacement dwelling. Now, this could prolong your close of escrow which, in a market like this where we’re starting to see interest rates creep up a little bit, it may not work for all buyers because they may actually lose their qualification if the interest rate gets too high to where they no longer qualify for that mortgage amount. But in certain instances, this just might be the best option.
Option number two is called an occupancy after close of escrow, and here’s how it works. Basically, you hire your real estate agent, you list your property, you get your buyer, you go ahead and close in a normal timeframe so your buyer gets that lower interest rate that they locked in. You close on time. Everybody’s happy. Homeowner, who just sold their house, retains occupancy in the house like a tenant, but this does not create a landlord/tenant occupancy. It’s not subject to the Oregon Landlord Tenant clause. It’s a little bit different because it’s tied to our real estate agreement. Important for you to understand that. You retain occupancy on the home for a pre-determined amount of time, whether that’s 30 days or 60 days, whatever you think you’re going to need, it’s not subject to you finding suitable replacement dwelling. It’s for a set term option.
Option number three is a prolonged escrow period. In other words, you would go ahead and list your property, find the buyer, get the price you want but, in the listing agreement, you’ve stipulated, basically, a seller contingency that any buyers are offering on the property with the knowledge and understanding that we can’t close until a future date, whether that’s two months, three months, four months. It’s not an occupancy after close of escrow because you’re not closing escrow until that future date. With this, you’re gambling that the market is going to stay strong, that the appraisers are going to still come in at the value that you need them to, rates aren’t going to price your buyer out of the market. This also works for homeowners wanting to sell their primary residents that haven’t lived in their home quite for two years, but they’re almost there, if they want to take advantage of this market. It also helps with people that might be relocating to a different market.
Are you thinking about selling your home, but you’re not sure if one of these options is the best for you? You want to get a little bit more information on that kind of stuff or ask about values or the market or if it’s time for you to sell, I’m always here to help. Just shoot me a text, email, phone call. Get a hold of me. I’d be happy to come out, meet with you, take a look at your house, ask you some questions, find out what your situation is and see how we can best help.
Have a great day. Thanks for watching and, by the way, if you have a friend or a family member who is thinking about selling their house, feel free to share this video with them if they’re facing the same kind of concerns. I’d be happy to help them out as well.
Suitable Replacement Dwelling Contingency
Option number one is to list your property with a “Suitable Replacement Dweilling” listing contingency. This option might give you the confidence to sell you house now and overcome the fear of becoming homeless. Here’s how that works.
You would list your home with your real estate broker, just like you normally would, but you have a contingency built into the listing that stipulates that all offers will be accepted “subject to seller finding a suitable replacement dwelling.”
Buyers are made aware of this contingency before scheduling a showing and definitely before submitting an offer, so they are fully aware that the sale of the home, is going to be contingent on the replacement clause.
Keep in mind, this could prolong your escrow period, which could have some risks. In other words, your qualified buyer could potentially be priced out of your home if the rate increases too much. This is a risk in markets with rising interest rates. Even so, in some instances, this just might be the best option.
Agreement To Occupy After Closing
The second option for those asking where they would go if they sell their home in Roseburg is an Agreement To Occupy After Close. With this agreement, the buyer and seller agree to allow the seller to retain occupancy after closing, for a set period of time. Here’s how it works.
Basically, you, as the homeowner hire a real estate agent and lists the home for sale. You move through a typical listing time and get a buyer. You go ahead and close in a normal timeframe, but instead of the buyer taking possesson of the home at close, the seller retains occupancy for a time.
If this is the option for you, you should have your real estate professional write this clause into the listing agreement and disclose it to any potential buyer prior to showing or negotiating offers. So, in short, the buyer doesn’t run the risk of losing their attractive interest rate because they close in a usual timeframe.
Keep in mind, this option requires flexibility and understanding by all parties. Usually, everybody ends happy… usually, but this depends good communication and how the agreement is negotiated. Options like this can create a win-win for both, the buyer and the seller because the buyer gets the home they want and the seller has time to find a replacement dwelling.
If you are concerned about becoming a landlord, this option does not create a landlord/tenant occupancy so it is not subject to the state landlord/tenant laws. This help limit the sellers risk as it is prewritten into the agreement. In this case, the occupancy agreement is tied to, and part of the real estate purchase agreement. It is important for you to understand that.
So, in this case, you would retain occupancy on the home for a pre-determined amount of time, whether that is 30 days, 60 days, or whatever you and the buyer agree to. It is not subject to finding a replacement dwelling, it is set for a term.
Prolonged Escrow Period
The third option gives you more than normal time to find a another home or time to decide where you will go if you sell your home in Roseburg OR. This option can be written into the listing contract as well. It is called a prolonged escrow period listing contingency.
In other words, you would go ahead and list your property, find the buyer, get the price you want but, in the listing agreement, you stipulate a seller contingency that any buyers who offer on the property do so with the knowledge and understanding that the seller can’t close until a future date.
The future date can and should be stipulated in the listing contingency. It can be a two month, three month, four months, etc. contingency. It is based on the seller’s needs since it is written into the listing.
This option does not give the seller occupancy after close of escrow and it does not make the sale agreement subject to finding a suitable replacement dwelling. In this case, you are not closing escrow until that future date. This option does come with certain risks you shoud be aware of becasue “life happens.”
- Interest rates could go up causing your buyer to lose their mortgage qualification.
- Change in employment could affect they buyer’s ability to buy.
- Life changes (birth, death, sickness) could all affect the buyer’s abiltiy to close a real estate transaction.
- Outside influences coul also cause qualification problems. For example, inflation, war, recession, etc.
- Decreasing home values or recession could negatively affect appraisal values needed for the loan.
With this option, you’re banking on the hope that everything will be reletively the same on your future closing date as it is when you accept the offer. This might also be a good option for homeowners wanting to sell their primary residents but haven’t lived in their home quite for two years, but they want to take advantage of this hot selling market. It also helps with some people that might be relocating to a different market.
Is It Time To Sell Your Home?
The best time to sell your home is when you have a legitimate need to sell. Life happens and when it does, only you can make the determination whether it’s time to sell or not.
If you are thinking about selling your home, but you’re not sure where you would go if you did, maybe you’re not sure if one of these options would work for you, or you just have questions, I’m here to help.
If you’re just unsure and you want to get a little more information on this kind of stuff, just shoot me a text, email, or phone call. I’d be happy to come out and meet with you. We can take a look at your house and go over your situation so I can see how how I can best help.
Have a great day. Thanks for being here, and by the way, if you have a friend or a family member who is thinking about selling their house, feel free to share this post/video with them, especially if they’re facing the same kind of concerns. I’d be happy to help them out as well.
