How to Build and Sell Your Home at the Same Time
Strategize the sale of your current home to align with your new home’s move-in date.
Building your dream home will bring lots of excitement and anticipation. In between designing your new floor plan and finding the perfect furnishings, you might be wondering about the best way to sell your current home. Is there a way to strategize the sale of your current home to align with your new home’s move-in date?
The answer isn’t easy. Selling a home involves a wide array of outside factors, many of which can be difficult to plan in advance. Though there’s no perfect solution, here’s what you ought to consider when building a home and selling one at the same time:
Start with your building timeline
Let’s assume you’ve secured the financing to purchase the land for your home. After breaking ground, construction for a new, custom home typically takes over ten months. You can use the number that your contractor estimates as a starting point, but you should expect to adjust that timeline for possible delays and setbacks. Keeping clear and consistent communication with your builder will give you a better idea of when your new home will be ready.
Building with Atmos means you can expect your custom build to take approximately eight months. Also, your Home Concierge is there every step of the way to keep you updated weekly on the progress of your new home.
Examine your local housing market
After determining a tentative move-in date, start looking at how long it might take to sell your home. According to Zillow, the average home spends about 65 to 93 days (two to three months) on the market. A local average will vary. The average time it takes to sell a home in Charlotte, North Carolina is 71 days, compared to 65 days in Denver, Colorado.
Research your local area to determine how long it might take your home to sell. Your real estate agent can use a multiple listing service (MLS) and find the data for you, or you can check out average listing times on sites like Redfin and Zillow.
You’ll also want to consider the current condition of the market. How many homes are for sale, and how many people are looking for a new home?
Buyer’s market
In a buyer’s market, there are more homes available than there are people looking to buy them. Houses tend to sell for less and typically take longer to sell. You should BUY your home in a buyer’s market. As a home seller, you’d face more competition in this scenario.
Buyer’s market recap:
More homes for sale, fewer home buyers
Lower home prices
Homes take longer to sell
Seller’s market
In contrast, a seller’s market is characterized by more buyers and fewer homes for sale. Home sellers have the upper hand in a seller’s market and can usually increase their selling prices. Homes also typically sell faster in a seller’s market. You should SELL your home in a seller’s market.
Seller’s market recap:
Fewer homes for sale, more home buyers
Higher home prices
Quicker sales
In addition to the local housing market, these four factors will influence how long it takes to sell your home:
Price: Pricing your home correctly will help it sell faster. Even if your home isn’t located in a prime area, listing it at a fair price for its value will help you attract more offers.
Location: Consider your current neighborhood. Are you located in an area with quality schools, shopping centers and nearby transportation? Having these characteristics will help a home sell more quickly.
Season: The time of year often plays a role in home buyer’s decisions. Housing markets in different areas respond to the seasons in different ways. Harsh winters and mild summers in some locations might cause a spike in sales during the summer months. Other locations that face the opposite — calm winters and blazing summers — might find more buyers during the winter. Selling during the correct season can impact how long your house will sit on the market.
Home condition: How old is your home or how long ago was it renovated? The age of your current residence might affect how long it takes to sell. Generally, newer homes tend to sell faster.
Though the coronavirus has disrupted many parts of our daily lives, many housing markets remain competitive — especially in cities like Raleigh, Charlotte and Durham. Setting aside other factors, the housing market in your area could be completely different from other parts of the country. The best way to determine when to sell your home is to understand what’s currently happening around you.
Putting it all together
After considering these factors, you’ll have a better sense of the best time to sell your home and how long it’ll take to sell. Plan to begin selling your current home about one or two months before you move into your new home.
While you may want to sell your home as close to the move-in date as possible, you should err on the side of selling after you move into your new home. Selling too early may leave you seeking short-term housing options, and you might have to move twice. Having two homes at one time is better than having no home.
If your home happens to sell faster than expected, you’ll still have these options:
Rent-back agreement
A rent-back agreement, negotiated between the home buyer and seller, allows the seller to live in the home for an extended period of time after the home has been sold to the buyer. After closing the sale, the seller typically pays the buyer rent for the additional time they live in the home. The rent-back agreement offers a temporary solution for short-term housing and prevents you (the seller) from having to move multiple times.
Short-term housing solutions
If your home sells more quickly than anticipated, you can find a short-term place to stay. Here are a few suggestions:
Reach out to family and friends
Find an extended-stay hotel
Work for lodging agreements
Sublet an apartment or home
Rent on a monthly basis
Timing the sale of your current home can be tricky, but Atmos has the tools to make the process as easy as possible. After breaking ground, construction for a new, custom home with Atmos typically takes around eight months, and your Atmos concierge will work with you so that your expectations are in line throughout the build. Atmos also offers REALTOR ® partnerships to help you sell your current home. Start your home building journey today.
