Ask A Broker Column. Original article published by the Vail Daily on
Answer: In our prospecting efforts, we are often confronted with people who tell us, “I would love to sell, but where would I go?” While that is a valid concern, there are some ways to take advantage of this market and hopefully we can bring some clarity to those that may be on the fence.
Get into a larger home with a similar mortgage payment
People who are fortunate enough to have purchased a home in the valley within the last 10 years have probably seen a substantial increase in their home’s equity. Combine that equity with relatively low interest rates and you may be in a position to get into something much larger while still maintaining a similar mortgage payment.
We have three clients that we have worked with in the past two months that did just that. We also had two clients recently that used the same strategy, but with rental properties that entitled them to 1031 tax benefits. Now they have larger properties that have the potential to generate more revenue with relatively similar carrying costs.
Buy a new home with a sales contingency on your current home
We have a created way to draft a contract that protects our clients, but also eliminates some of the risks sellers face when dealing with sales contingencies. After all, a seller doesn’t have many outs once they are under contract, and in this market, they can be choosy when it comes to selecting buyers.
While every deal is different, we make preparations in advance to ensure the process is seamless, which is attractive to sellers who may otherwise be leery of sales contingencies. This brings up another concern: How do you sell your house and buy a house at the same time without becoming homeless at some point in the process? The seller can be protected while they are in the process of buying with contingencies that protect them from becoming homeless. In some cases, we also recommend a post-closing occupancy agreement so that you have time to move from one house to the next without losing your mind.
We talk to a lot of locals who are at a point where their houses have outgrown them. Whether the kids moved out, or the upkeep is becoming a burden and a townhome sounds more appealing, they have decided that now is a good time to make the most of their investment and to sell.
Yes, we are seeing record sales numbers and as a buyer that might not make sense, but there are still some deals to be found out there, and many of them are often off-market.
As a local team with an extensive network in the community, we can help you find them. If you plan to move out of the valley entirely, we also have resources to help you find a reputable real estate agent in another state or town to make the process seamless. Please call us to discuss how you can take advantage of this market.
Slifer Smith & Frampton brokers George Streeter and Sarah Parrish are both Vail Valley natives with an intimate and life-long knowledge of the area from East Vail to Dotsero. You can reach George at 970-376-3777 or Sarah at 970-903-3634.