Ask Phyllis: a blog series of frequently asked real estate questions. Email us here
Timing my home sale
Dear Phyllis,
I want to sell my house and move out of state. Currently living in La Crescenta in a very nice neighborhood. I need to stay in my house until the end of July or first week of August. When would be the best time to put my house on the market? And can I stipulate that I will not vacate the house until September 1st? Thank you for your help.
Timing my home sale
Dear Timing, my home sale,
The good news for home sellers is that there are so few homes listed for sale. Sellers can name their terms. Rent backs, long escrows, extended possession after closing escrow, etc. You can certainly specify when you wish to move.
Rent Back: If you are purchasing your next home, a rent back of your existing home will allow you to be a stronger (non-contingent) buyer. The drawback to the seller is that the buyer often expects that the seller cover their PITI (principal, interest, taxes, and insurance). This sum may be substantially higher than your current payment.
Long Escrow: Disadvantages of a long escrow are: A) The buyer could lose their job, get divorced, etc. B) Most lenders will guarantee (lock) a buyer’s interest rate for no more than 60 days. A longer rate lock will require the buyer to pay an additional fee.
Extended Possession: Depending on your timing, you may request a 45-day escrow and to remain in the home at no cost to you for a specified period of time, perhaps 15 days. Of course, if you are not paying rent, the buyer will calculate this in the price they are willing to pay for your home.
There are so few choices for home buyers today. As a result, I do not believe you will have difficulty finding a buyer who accepts one of these options. Although you do not want to move until July, you should meet with a real estate agent now. Then, you can decide which approach works best for you. In addition, there are many advantages to hiring a Realtor early in the process.
First, are you willing to declutter and do some light sprucing up to sell quickly and at the best price? If so, your real estate agent or home stager should meet with you to review recommended repairs. Furthermore, if you want to maximize your sale price, you may need simple improvements like fresh paint. Your Realtor can gather estimates and help you choose colors. I often work with sellers months before they list. This allows for a calm, stress-free process. If you have lived in your home for many years, decluttering and sorting can take time.
Second, consider your price range. If your home sells under $650,000, a first-time buyer will likely purchase it. However, higher-priced homes often attract buyers who must first sell their current home. If you list early, you gain time to accept a contingent offer based on the buyer’s home sale. In that case, the buyer has less negotiating power, which benefits you. It may work in your favor to list sooner rather than later.
Third, remember that real estate commissions depend on the sale of your home, not an hourly rate. Therefore, many experienced sellers hire a Realtor early to gain full support without increasing commission costs.
