Seller Strategies To Maximize Leverage

As a seller it can certainly be overwhelming to try and figure out exactly how to execute the sale of your current home while also trying to find, buy and move into a new home.  I am here to tell you that with our help you have options to control that process. Sellers in this incredibly HOT market hold the power in most situations to dictate transaction timelines which can make your move much more convenvient. 

Here are my seller strategies to maximize leverage in the current market. 

Subject To Seller Finding Suitable Housing Clause

This strategy gives you, as the seller, the most flexibility in the timing of the sale of your current home. A disclosure would be added to the listing that states: “The sale is subject to seller finding suitable housing”. If a buyer steps forward willing to make an offer with accepting that contingency, you would have your home under contract and be able to shop freely for a new home. This will improve your strength as a buyer for your purchase because you have a signed contract on your current home. Though this would be an ideal situation for sellers, some smart buyers and their agents will put time constraints on the contract to protect the buyer in the event you can’t find a home in a timely fashion. From a buyers perspective this type of contract is risky because they could tie themselves to your house and find out in 6 months that you couldn’t find the right home. They then would be out of luck because you as the seller would have the right to cancel the contract without recourse. This strategy is most successful with time limits like 60-90 days to find your next home. Buyers can usually wait that long for a house they love but going beyond that could make it less attractive because the buyer would be missing out on other opportunities without a guarantee that they can actually execute the purchase of your home.

Extended Closing

In this strategy you require buyers to agree to an extended closing period. It would be disclosed as “seller requires a closing date no earlier then August 31st." Again, this is similar to the suitable housing strategy but in this case the buyer can feel more secure because they know they will ultimately be able to buy your home. That confidence is very meaningful to a buyer so you should keep that in mind when choosing which strategy you would like to use.

Lease Back Clause

A lease back is when a buyer is agreeable to buying your house and then allows you to lease it back for an agreed amount of time, which is generally 60-90 days and in some cases longer. This strategy gives you the best leverage for your next purchase because your home is sold and you are now a ready, willing and able buyer. The bonus is that you do not have to leave your home right away which gives you some time to shop around for the right property. This is also a more secure contract for a buyer because they know they can actually purchase the property and that they will ultimately take possession after the lease back term. This could be a very attractive option for some buyers if they are coming from a lease situation themselves, where the term has time remaining on it. This would allow them to collect rent from you to pay their new mortgage and finish out the term of their lease. No matter which strategy you choose to explore there will be ways to enhance each one depending on the buyer situation, timing and offer strength.

My job is to help you understand your options and guide you through the negotiations in order to help you maximize the value of your sale. This will enable you to be the strongest buyer you can be and ultimately achieve the goal to move just ONCE! If you would like to find out more about my strategies and what your home is worth in today’s market, please contact me below and I will provide your with a Free Market Analysis and advice on things you can do help maximize your sale price and how to set yourself up for a seamless transaction! - Peter Edwards