Where Can I Live if I Sell My Edmonton House Too Fast?
"I've heard the market is good, but I'm worried, where can I live if I sell my home too fast?"
If you find yourself asking this question, don’t worry, you’re not alone. The fear of selling your home TOO quickly, albeit a great problem to have, is a very real scenario in the current real estate market in Edmonton. I’m writing this article in November 2021, and even though we are getting into what is historically a slower season, we still have incredibly strong sales , particularly in the detached single family home market, and are still at an all time high of the past 5 years.
To start, the first question you may have is; can I list my home for sale if I haven’t found a place to live yet?
The answer is yes, and depending on your situation, you arguably should. Despite Edmonton currently having more indicators of a seller’s market, historically speaking it is hard to sell a home but comparatively easy to buy one.
Now the caveat to this advice is; be prepared! It’s important to have a gameplan when you’re selling your home, and to know where you want to go. But it is equally important to have a plan B if your home sells too fast. Ultimately you don’t want to have to rush a decision when buying. Moving twice sucks, there’s no two ways about it, but it’s better to go through the hoops of moving twice and getting the home that is best suited for you.
One aside I want to mention here. For what it’s worth, the vast majority of my clients who sell and then buy another home, end up finding a home to buy in time. The possession dates usually line up well, and although there are lots of moving parts, things go pretty smooth and is as headache free as the real estate process reasonably can be. What I’m talking about in this article is the most practical plan B scenarios. Sometimes we just don’t find the right home in time, and you definitely don’t want to rush, so its good to know there are many options available for you.
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Okay Thomas, so I may sell my home too quickly, what do I do? Well the good news is, there are actually several different options for you out there. I’ll provide some details below for each scenario. These are vaguely ranked from most to least practical, but everyone’s scenario is different and there’s not a blanket solution here.
1 – Sell & buy with bridge financing
This is likely the most ideal scenario if you’re planning to sell and then buy, however, it does have the most moving parts. Bridge financing is a special type of interim financing that allows you to close on and take possession of your new home, and then provide a bridge of financing on that property until your existing home closes a few weeks later.
You can get bridge financing from most lenders if you qualify for it, talk to your mortgage specialist about the options for this!
If your closing dates are relatively close together, or if you don’t plan on interim accommodations for too long. AirBNB’s can be a convenient and affordable option for short term rentals (think 2-6 weeks). You may associate AirBNBs with vacations, but there are TONS in Edmonton, and very often in communities close to either your old home or new home, making the stress of moving a bit easier.
On top of this, you don’t have to worry about packing and unpacking furniture twice, you can simply move right into an AirBNB as they will generally be entirely furnished (even including dishes!). This likely means having to put much of your stuff in storage, but seacan options are great and convenient for moves like this.
As this may feel a bit like living in a hotel, and can get a bit expensive, generally AirBNB best suits someone who only has a few weeks between their two moving dates.
Althought airbnbs vaguely fall under this category, what I’m really talking about is furnished and semi-furnished rentals that specialize in more so medium term leases. This would be great for someone who needs a rental anywhere from 2-4 months. These options usually offer flexible leases and month-to-month options. As they’re rented more on a monthly basis - their prices are typically more akin to market rates than say AirBNB.
Another option could be a corporate rental. Again these are very similar to the above, but are a bit more targeted to short term relocations. Corporate rentals are also a great option if you’re relocating cities, and don’t exactly know that new city you’re moving to and want to get better situated before buying a house.
Again, this option negates needing to move twice, or you can get a short term unfurnished suite as well if you don’t want to put your stuff in storage.
You can often find 6 month rentals if you need a bit more time. This is the cheaper option, however it does involve you packing, unpacking, and repacking your belongings, but also gives the most flexibility.
As we’re talking longer term here, the factors of monthly costs should become a larger discussion.
Logically if you’re paying 6 months of rent, it may make sense at this point just to pay 6 more months of mortgage, and then sell at that later date.
So this option is likely more applicable or relevant if you’re someone who moreso NEEDs to sell, and aren’t entirely sure where you’re going next.
As for links - AirBNB, or any of the furnished Rental links will have results for this time frame as well!
5 - Stay With Family
You may have rolled your eyes at this point, but it’s entirely more common than you think. If you need a quick and affordable option for short term accommodations, living with family is a great option between houses.
Yes, living with the inlaws sucks, BUT this is typically only done by sellers who need something very short term, and on the plus side have another home lined up.
So as you can see, there’s all kind of options that are available to you if your home sells too quickly. If you’re someone concerned about your home selling too quickly, I’d say don’t worry too much. The majority of sellers are able to sell and buy without issue. Those who may not find the next home right in time, or if the possession dates don’t quite line up on your current sale, there are many excellent and affordable short term options that make life easier for you and help to make your move go smoothly.
About The Author
Hi! I'm Thomas and I'm your Low Fee Edmonton Real Estate Professional. Early in my career I realized that the methods of much of the realty industry were extremely dated and charged outrageous commissions. I chose to make a move that allows me to better serve clients at a much more reasonable rate. I am committed to saving every client thousands on fees in every transaction, buy or sell. You can see what my past clients have to say about selling with me below!
Information Courtesy of Thomas Harrington - Broker, REALTOR® at Black Sheep Realty. Not intended to solicit buyers or sellers under contract REALTOR® , MLS® , and REALTOR.ca are property of the Canadian Real Estate Association. Information deemed reliable but not guaranteed. Commission savings are based on a commission of 7% on the first $100,000 and 3% on the balance. "Saving thousands on commissions" is based on our 1% lising fee comparaed to the traditional costs of 7/3 or 3.5/1.5. All commissions may be subject to a minimum fee. Our packages are only for Black Sheep Realty as the listing brokerage and do not include renumeration to be paid to a buyers agent, if any.
Average savings of $4800 is calculated by comparing actual listing commissions paid on 1% or flat fee packages to a traditional commission of 3.5% on the first $100,000 and 1.5% on the remaining balance of the sale price + GST
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