Efficient Simultaneous Home Buying and Selling: Bonus Cocktail Recipe Included

Embarking on the journey of buying or selling a home can be an exhilarating adventure, and for some, the thrill lies in tackling both endeavors simultaneously. If you find yourself in the position of needing to navigate the complexities of buying and selling concurrently, consider these tips to steer through the potentially challenging course ahead.

1. Evaluate Your Local Market: Before diving into the dual process, assess the local real estate market. While many prefer to sell their current home before making an offer on another, the decision may vary based on market conditions. Research your target area to determine if it's a buyer's or seller's market. A surplus of properties might indicate a favorable time to list, while low inventory could suggest waiting for the market to pick up. Consulting with a trusted real estate agent familiar with current trends can provide valuable insights tailored to your unique situation.

2. Understand Your Finances: Finances play a pivotal role in both buying and selling transactions. Whether you're aiming to sell or buy, a clear understanding of your financial situation is crucial for informed decision-making. Knowing the equity in your current home, especially if you have a mortgage, is essential. This equity could potentially serve as a down payment for your new home, though accessibility is typically after closing. Consider a property inspection to identify necessary repairs or improvements, influencing the sale price or concessions for prospective buyers.

3. Utilize A Contingency: Since synchronizing the sale and purchase on the same day is often challenging, incorporating contingencies into your contracts can be beneficial. A contingency is a provision accounting for possible events or circumstances affecting the financial ability to close a purchase sale. If buying before selling, make your offer contingent on the sale of your current home. Conversely, if selling before buying, opt for a settlement contingency, tying the purchase to the sale of your existing home. Negotiating a rent-back, where you sell your home but rent it back for a specified period, can provide flexibility in finding a new home.

   It's worth noting that in low inventory markets, sellers may be hesitant to accept contingencies due to high demand and limited properties. In such cases, buyers might encounter resistance when proposing a sale contingency.

In the realm of real estate, where significant financial transactions are at play, uncertainty can be daunting. If you're unsure where to begin or whether to undertake both processes simultaneously, seeking professional guidance is advisable. Ensure your financial records are current, have a realistic expectation of your home's market value, and, if searching for a new home while selling, devise a contingency plan in case of unforeseen delays. Your real estate professional is a valuable resource, offering insights into market dynamics and sharing experiences of other buyers and sellers.

As a delightful bonus to your real estate journey, enjoy the 'Realty Reliever' cocktail. Crafted to provide a moment of tranquility, it's the perfect way to unwind and celebrate your achievements in the dynamic world of home buying and selling.

• Realty Reliever

  • 2 oz Vodka

  • 1 oz Fresh Lemon Juice

  • 1/2 oz Simple Syrup

  • Splash of Club Soda

  • Lemon Slice for Garnish

  • Ice Cubes

  1. Mix Ingredients: In a shaker, combine vodka, fresh lemon juice, and simple syrup.

  2. Shake Well: Shake the mixture with ice until well-chilled.

  3. Strain and Pour: Strain the mix into a glass filled with ice.

  4. Top with Club Soda: Add a splash of club soda for a fizzy touch.

  5. Garnish: Garnish with a lemon slice on the rim.

  Enjoy your Realty Reliever – a calming companion for your real estate journey!

October 2020 Report

Homes Under Contract Up 36% / Sales Up 23%
Median Sale Price Up 18%

 For Buyers:
A common complaint in the resale market is “there’s nothing for sale”.  However from July through September, the Realtor® community added 30,340 brand new listings to the Arizona Regional MLS and sold 27,746, leaving just 8,203 remaining listings for sale.  That makes this 3rd Quarter the 2nd best in Greater Phoenix history for closings, falling just 436 sales short of 2005.  If that’s not impressive enough, there are another 13,502 properties currently under contract and scheduled to close in the next 30-45 days; up 36% from this time last year.  With this information we can conclude that there is plenty for sale, but many listings are simply not in Active status longer than 24 hours in order to be counted.  Getting the supply count to rise right now is like trying to fill a bathtub when the drain is wide open.

Over half of all listings that went under contract in the 3rd Quarter were Active for only 9 days or less prior to contract.  To quote the movie “Spaceballs”, that’s ludicrous speed!  As exhausting and stressful as it is for buyers and their agents, supply and demand measures indicate prices in Greater Phoenix will continue to rise well into 2021. Hopefully the short-term pain will lead to long-term gain for those who ultimately win a successful contract.

For Sellers:
Appreciation has accelerated significantly since June of this year.  The median sale price is up 18% since last October, but the current measure of $329,900 is up 12% from where it was just 4 months ago at $295,000. While that’s exciting for sellers, the speed at which homes are selling is causing some to worry they will not find somewhere to go after their home closes.  As a result, Realtors® are dusting off rarely used seller contingency addendums stating that any accepted contract will be contingent on the seller finding a home themselves prior to close.  

Compared to last year, sellers are asking 15-20% more for their homes in all price ranges between $150K-$500K. Between $500K-$1M, list prices are up 9-13% and 3-8% for price ranges over $1M.  The highest percentage of sales over asking price in the last 30 days are occurring between $200K-$400K with a measure of 34-45%.  While that’s a high percentage, it’s not the majority of sales. Most properties are still closing at or below asking price. However for those who did go over asking price under $400K, most winning bids were within $7,000 of list.

Commentary written by Tina Tamboer, Senior Housing Analyst with The Cromford Report
©2020 Cromford Associates LLC and Tamboer Consulting LLC