What to Do When Your House Sells Faster Than You Expect
Homes are selling incredibly fast in today’s market. And for most sellers, that’s a great thing.
But what if you haven’t found your new home just yet? Where will you move to once the transaction goes through?
With closing day now weeks on the horizon, that’s hardly enough time to find a place, put in an offer, and make a purchase of your own — even in normal times. When you throw in how competitive things are in today’s market, the premise seems even bleaker.
Fortunately, that’s not your only option.
Did your home sell faster than expected? Here are five strategies that might be able to help
1. Rent it back.
A rent-back — also called a lease-back — is a great option to explore if you haven’t found that new property. With a rent-back, the transaction proceeds as planned, and the buyer closes on the home. But once that’s done? They don’t move into the property just yet.
Instead, you rent the home back from the buyer until you’re able to find a new one. You’ll usually pay a daily rate for this (the exact amount will be spelled out in your sales contract), as well as the normal maintenance and upkeep while you’re there. Once you’ve closed on your new home, you can move out and the new buyer will move in.
Keep in mind that not all buyers will agree to this (they might have a timeline of their own to keep to), so make sure you negotiate this at the beginning of the process — before you accept the offer. Your agent can help you determine if it’s a smart strategy in your specific situation.
2. Find a rental property.
Another option when your house sells faster than you expect is to get a rental property in the meantime. Many apartment complexes or even single-family landlords offer month-to-month or short-term leases. You might be able to pay for just one month at a time or go for three or six months if you’re not exactly sure when you’ll be buying that next home.
A quick pro-tip here: If you go this route, consider renting near the neighborhood you plan to buy in. This will make your move easier, and it can help you fully evaluate the community before you commit to it permanently. You can also go ahead and enroll your kids in the appropriate school district if that’s something on the agenda.
3. Get a hotel.
If you’re really on a tight timeline or there aren’t any rental properties available in your area, a hotel can be a good option. You’ll want to look for one that offers weekly or monthly rates, and ideally, one that offers in-suite kitchenettes and other perks. That way, you’ll have a more “home-like” experience.
Most major chains, like Hotel 6, for example, offer weekly and monthly rates you can take advantage of. If you end up choosing this option, you’ll want to rent a storage space separately to store your furniture and bigger items. You won’t be able to bring much to a hotel — no matter how large your room is.
4. Move in with friends or family.
It’s not ideal, but you might also be able to move in with a loved one temporarily if your house sells faster than you thought it would. Obviously, this depends on where your loved ones live, as well as how much space they have, but it’s definitely going to be your most affordable option. This one’s usually best if you’re on a tight budget, your loved ones are local, and you’re confident you’ll be buying a place fairly quickly.
Again, you may need to rent a storage unit (or at least a storage pod) due to space constraints. Your loved one may also have a garage or basement that they’ll let you store larger items in until you’re able to buy.
5. Consider an Airbnb if your house sells faster than anticipated.
Airbnbs are technically “short-term” rentals by definition, but many hosts actually offer longer-term stays, too. In fact, there’s even a feature on the app that lets you search for monthly stays in any given city.
The perk of this option is that it gives you your own dedicated home for the time you rent it. You can find a place that has the number of bedrooms you need, a full kitchen, and all the other amenities your family desires, and you won’t have a landlord (or mom or family member) breathing down your neck either. (You will need a separate storage space, though).
Move fast on that new place
Embrace’s Approved to Move™ program can also help. Under the program, you’ll get a fully underwritten approval from the start, which can help you both stand out with sellers and move faster in your transaction. To learn more, reach out to an Embrace Home Loans office in your area.