Ask a Broker: Can we put our house on the market before we find a new property?
On Real Estate
Team K2: My partner and I are both working from home now, and we think it’s time to upgrade to a larger house. Can we put our house on the market before we find a new property? — Seeking More Space
Seeking More Space: In short, yes, this is certainly possible. This is a question we’re getting a lot lately as more people are working from home. In a competitive market such as this one, anxieties are high about finding the right place to buy, while simultaneously selling one’s existing home.
One thing is certain: No deal is ever the same, and sometimes we have to get creative to make it work for both parties. That’s where a knowledgeable broker comes in. We figure out the best ways to sell your house and get you the new place you want.
The Vail Valley is extremely tight in inventory right now. Because inventory is low, sellers are generally more in control of contractual details. But even in this market, scenarios can be worked out before closing to make the buyer and seller more comfortable. Let’s walk through a few of the most common scenarios.
Replacement property clause
Say you do put your house on the market, and you receive a satisfactory offer before you’ve found a new home. In this case, we often write a replacement property clause into the contract. The clause allows for you — the sellers of a property — two to three extra weeks to find a new home before closing. Typically, closing takes 45 to 60 days from the signing of the offer. This clause allows for extra time on top of that. If you don’t find the right new place during that extended time period, you have the right to terminate the purchase contract on your home.
If your sale and purchase are made on the same day, it’s called a simultaneous closing. This is a common scenario because most homeowners use the proceeds from the sale of their current home toward the purchase of their next home.
Post-closing occupancy agreement
For many of us, it can be difficult to move out of one home and into a new one on the same day. To ease the rush, we often draft a post-closing occupancy agreement. This allows for you — as the seller — a short-term residential occupancy that cannot exceed 60 days. We find that giving a seller a reasonable time frame to move out of their residence reduces the stress of a simultaneous move-in and move out date.
There are so many moving parts with the sale of a property, and it’s important to work with an experienced broker who is well-versed in lining up the various dates and deadlines so you can move out of your old house and into your new one with ease.
With more than 40 years of combined real estate experience in Eagle County, Team K2 brings a wealth of knowledge to every buyer and seller they have the opportunity to work with. This top-producing team is consistently recognized as having more transactions than any other broker or team at Slifer Smith & Frampton Real Estate during the past five years. Look to Kim, Kelly and TJ as your real estate insiders and downvalley specialists.
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