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Buy First? Sell First?

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Paul George,

Buy First? Sell First?

I think the real estate market for our Columbus Metro Area in 2023 will be very strong.  Despite what you hear, Columbus is poised for another frenzied Spring.  The national news will downplay the national housing market but we here in Columbus are spoiled with a bustling economy due to the many new businesses locating and expanding here.  The rest of Ohio will be flat, but per local economic forecasts, Columbus will have a booming real estate market.

Interest rates are already starting to come down from the highs (less than 6% on a 30-year fixed rates) and the rate of price increases on housing is slowing.

Our biggest challenge is inventory.  We are still very, very short on inventory.  We just don’t have enough good houses to sell.  This is leading to a concerning cycle.

On my desks, I keep files of clients who are ready to buy and ones who are ready to sell.  Buyers tell me if the right house comes up for sale they will buy.  Sellers tell me if they can find a place to go, they will sell. 

Unlike “unseasoned” real estate agents, I have many of these clients.  Every now and then I can put buyers and sellers together without the homes ever hitting the market because of my connections. In 2022, I sold three houses without them every hitting the market because I was able to connect the buyer and seller.  There are a ton of advantages to a seller doing it this way, mainly that they call the shots. They may lose out on testing the open market, but to many it’s worth not having to prepare the house for sale.  They sell the home as-is and usually dictate closing and possession times and just about anything to accommodate the seller.  It’s not the right situation for everybody but the option is available.

Currently, I have sellers who will sell if they can find the right house/condo. I am working with a family looking in Westerville, but they need a specific elementary attendance area.  I also have three executive home owners in Westerville who would sell if they found the right empty nester type home or condo, and five other Westerville homes waiting for the school year to end.  There are another two in Galena and one in Lewis Center waiting for graduations this Summer.  Most of them will be purchasing something.

My conversations in this low inventory market are usually like this; “Should we sell before we buy,” or if the right house comes up, “Should we buy before we sell?”  Many times, parties don’t have a choice because the thought of two mortgages is not financially feasible, or it’s not feasible to find temporary housing until you find a house.  Every situation is unique but generally, in this market of low inventory, lenders are making equity loans and bridge loans attractive short term.  My suggestion is to buy before you sell if the right house came up for sale.

So many moving parts here the least of which is, do you have the stomach for it?

Here is a quick, real example, of how the process will work with the right advice. I had a homeowner who has some good equity in their current home.  They found the right house and we negotiated a six-week closing on the house they wanted to purchase. The buyer had an equity loan already in place for the down payment on the house they wanted to purchase.  Right after going into contract on the new house, we put the current house up for sale, price it so that we can sell in a weekend, and negotiated a four-week closing.  This allowed us to close on the current home prior to closing on the home to purchase.  Out of six scenarios I dealt with last year like this, only one house did not sell in time.  In that case, when the house did sell, the sellers took the rest of the equity in their current home (after the sale) and paid down their principle on the new home and the lender recast their loan to a new lower payment.

If this sounds confusing, call me.  If you need details and the logistics of how this can realistically work, call me.  If you are looking for the “right house,” call me.  I may have a seller waiting to sell but the timing isn’t right just yet.  If you are thinking of selling, but don’t want to call until you find the right house, call me, I may have a buyer who is willing to wait and buy your house, as is.

You need an experienced “insider” for this 2023 real estate market.  If you, or someone you know, are thinking of buying, selling, or building, we need to have a conversation about this market. 

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