The current real estate market, especially in Southern California is doing very well right now. Prices are the highest they have been in years, and buyers are ready and waiting to pounce on the perfect opportunity. Nationwide, people at all income levels are returning to the ideal that real estate is the best long-term return on investment. If you want to sell your home and buy another at the same time, this market is perfect for it.
Seller’s Market Navigation
Southern Calfornia and Temecula in particular is closer to being a seller’s market right now. In turn, buying your new home may prove to be a longer process than selling your current one. However, since Temecula entertains a market filled with higher-end homes, the total days on market may be longer than in other lower-priced areas. Homes are in demand due to low inventory, but still, pricing and having your home in tip-top shape is key to an efficient sale. If you are ready to place your current home on the market make sure to have already begun your next home search. You will want to buy sooner rather than later due to rising prices and impending interest rate increases.
How to Bridge the Gap Between Sale and Purchase
This is a strategic series of events and should be facilitated by a Realtor in order for no detail to fall through the cracks. In the current market, you should not have a large gap between buying anew and selling your current home. However, it is wise to have cash at the ready for the mortgages paid in between. Even though this time should be brief, it is better to prepare in order to pay two mortgages at once than be surprised by the costs in case they linger. If you are paying in cash or own your current home in full then bridging the gap between sale and purchase will be much easier. There is “bridge” financing available to support your way from current to new home if your sale takes longer than expected, but this should not be necessary.
What if You Sell First?
In the case that you sell your home and do not have a new home lined up, this is not the worst case scenario in the least and is the most common in the current market. With the help of your current agent’s references, you can find a short-term rental that will more than satisfy your needs in the meantime. Selling your home before you buy or build a new home is a good thing. Renting in the meantime should tide you over and allow for more reflection on what you want in your new home.
What if You Buy First?
Buying first is not the best of the two scenarios, but you will have a new home to move straight into. If you do not own your previous home outright or paid in cash for the new property then this may mean paying two mortgages at once. This is where a knowledgeable Realtor comes in handy. They can handle the marketing and staging of your previous home while you settle into the new one. Don’t forget that staging is key and if you are moving out all of your furniture into the newer home, then you will need to arrange for some sort of staging in the old home.
Either scenario right now should not last long due to market conditions. We are extremely positive about this summer’s real estate transactions and are ready to facilitate new sales and new purchases in this healthy market. For more information about selling your home and/or buying a new property please don’t hesitate to contact us with any questions. For more resources to fill in the blanks of the selling process, please consult our Definitive Guide to Selling Your Home.