There has been a lot of talk about how, despite higher mortgage rates, it is still a “seller’s market” here in the Greater Boston area. However, if you fall into the category of Ready to Sell, the natural next question is - where do I go? After all, most sellers are inevitably also buyers.

Inventory is still extraordinarily tight, especially in the suburbs. While this works in favor of sellers, these same people are wondering how they will find their next home under the same low inventory circumstances. Sellers have a few options, and the fact that they already own property and have built up equity is quite useful when finding the next home.

Downsizing

Those looking to downsize are in a quite advantageous position. Whether interested in moving closer to the city, to another town, a planned community, near the water, or finding something smaller in their existing town, downsizers have the advantage of equity. Often, downsizers have built up equity in their homes that allows them to purchase their next home all or substantially with cash. This bolsters them against the whims of the market and interest rates.

Many mortgage lenders have bridge loan programs, allowing buyers to borrow against the appraised value of their home prior to the sale. This allows downsizers flexibility in their purchase, allowing them time to find the perfect next home without needing to use a Home Sale Contingency. Similar programs exist through asset based loans as well.

For those unsure of where they want to land, the “rent back” option has been used to allow homeowners time to find their next place. Downsizers also have the option of renting until they find their dream home.

Lease Back

Another great strategy utilized by sellers in this market is the option for lease back. In this case, a seller will complete the sale of his or her home to the new buyers, and rent back from the new buyers for a set amount of time. This allows for more flexibility when looking for a new home or scheduling a move.

Upsizing

Many sellers need more space and are ready to sell their current home in favor of sizing up. These sellers are positioned well in the market. Built up equity in their current home allows them to purchase a more expensive home without feeling too much of an impact from mortgage rate lability. With much talk of a possible recession, it seems likely that there will be a time down the line to be able to refinance into a lower rate. Until then, ARMs or interest only loans may be a good option for those sizing up.

For those who are afraid of decreasing home values (which we haven’t seen much of in Greater Boston), even if their home sells at a discount of 5% off the top of the market, they would be purchasing a more expensive home at 5% off the top of the market (thus giving the upsizer greater equity in their home down the line).

Relocating

For those relocating, there has been no better time to sell. The Greater Boston area is experiencing all time lows in inventory coupled with unprecedented housing scarcity and all time high pricing. There simply are not enough homes in the Greater Boston area for those who care to live and work in these communities. 

With our dedicated agent-to-agent network, it’s easy to find the next rental or home in a new community while maximizing your home’s value in this market. Many, if not most, other markets in the country have an opposite dynamic with inventory beginning to build, presenting ample opportunity for buyers.

Investors

Similar to those relocating, investors are in a great position to sell. If you’re selling an investment property that means you already have a place to live. With historically low levels of inventory and a large number of waiting buyers, this could be the right time to sell - whether to cash out on your investment or 1031 exchange into a different property. 

Even in these challenging times, great homes are still selling above ask with multiple offers. My mission is to ensure that every homeowner who wants to sell receives expert advice in order to receive top dollar for their home.