According to the statistics, the current median home sales price in North Reading is $798,400 up from $600,500 at the same time last year and many sellers receiving more than their asking price!  Numbers like this have many homeowners wondering if they should jump into the market to capture maximum profit, but one big hurdle stands in their way...low inventory. Once they sell their home, where do they go?

The inventory problem

The amount of active inventory of homes in 2022 so far has only been 5 units. This number is down more than 55% percent from this same time last year.

The problem is compounded by the fact that available homes are selling lighting fast. 

This low inventory, high-demand environment means competition for available homes is fierce, and with increased rental and building prices, many hopeful sellers feel they have no other option than to stay put.

The possible solutions

Geri Farrelly, Broker/Owner of Farrelly Realty Group, says she hears these concerns from potential sellers quite often and can help those who want to take advantage of the market by getting creative and thinking outside the box.

Some people who sell their homes stay with parents or relatives while they look for their next place.  Other sellers may also decide to rent temporarily, going with a month-to-month or short-term lease. This gives sellers time to relax and shop for their next home without worrying about how long it could take. The definite downside is having to move twice, and for those with children or pets, moving into a smaller apartment may not be ideal. Also, the financial part could be a win or loss depending on the length of the stay.

But these options are either not acceptable or not available to the majority of people.  There are some lesser known more reasonable contract options for people who don’t want to miss out on the opportunity to sell for top-dollar.

The most popular option is probably the leaseback scenario, in which a buyer gives the seller the opportunity to stay in the home for an agreed upon period of time after closing.

Typically, the leaseback agreement allows the seller to stay for up to 60 days, giving them time to find their next house, or at least allowing them the time to make suitable arrangements. This option obviously depends on the buyer’s flexibility, but a lot of buyers are offering this in order to have their offers stand out.

Another option that depends largely on buyer flexibility is the use of the clause, “subject to finding suitable housing”. Homes listed as “subject to find suitable housing” are those in which the sale is subject to the sellers finding their next home. Keep in mind buyer flexibility is at an all time high now because they want to have their offer accepted and the better the terms in favor of the seller in the offer the more likely their offer will be picked.

Just how much time the seller has depends on negotiations. If the contract allows the seller 60 days, and they fail to find suitable housing during that time, the parties can either renegotiate an extension or the seller can choose to keep their home. If the seller does find a new home within the 60 days, the contingency status is immediately removed, and the sale moves forward.

The problem is that a lot of buyers want to know they have a house locked down, and there is obviously some uncertainty with this option.  To alleviate this uncertainty a seller can put a close date that is months out.  This gives the seller enough time to find another home and the buyer a certain close date. 

While it can be tricky to navigate today’s market, sellers can alleviate some stress by partnering with an experienced, local REALTOR®.

Sellers have a unique opportunity in today’s market, but they also face unique challenges. Even with these challenges, buyers, sellers, and their agents are working together to complete deals that benefit everyone. There are options available and your best chance of being successful is to work with a trusted REALTOR® who is looking out for your best interests.  If you have any questions or want us to help you “think outside the box” we would be honored to help you!