Selling Your Home: Smart Strategies in a High Priced Market | Adam Wagner Real Estate

The Challenge Sellers Face Right Now

Right now—and for the last few years—we’ve been seeing homes sell incredibly fast. Many sellers hesitate to make a move because they’re wondering, “Where do I go next? I can’t buy anything because it’s too expensive. I don’t want to waste money renting. I don’t want to move twice. What do I do?”

That’s completely understandable. So, we’ve outlined four or five different options that are possible. They’re not perfect for everyone, but they give you a few solid paths forward depending on your situation.

What’s Driving the Current Market

The root of the problem is extremely low inventory, which continues to drive prices higher. Sellers are thinking, “Maybe it’s time to take some chips off the table and cash out.”

If you’re selling a larger home and moving into a smaller one, it’s a no-brainer—it’s a great time to make that move. If you’re upsizing, however, the higher prices on larger homes can make things more complicated. Still, there may be other motivating factors—like needing a better floor plan or another bedroom—that make it worth moving forward.

Option 1: Reverse Contingency

One strategy we’ve used successfully is a reverse contingency. This means we agree to the terms of selling your home, and then you have a set period—say 60 to 90 days—to shop for your next one. If you find a home you love, we move forward with the sale. If not, we don’t sell.

It’s not always ideal, especially from a real estate perspective, since it keeps some people in limbo. But it’s an effective way to protect sellers from being without a home, which is the most important thing in a market like this.

Option 2: Rent-Back Agreement

Another strategy we’ve had a ton of success with is negotiating a rent-back. In this scenario, we negotiate your sale price and closing date, and then you rent back the property for a short time—anywhere from a few weeks to a few months.

This gives you access to your sale proceeds while still having a place to live. It also allows you to buy your next home without making your offer contingent on the sale of your current one. Around 20–30% of our closings have used this approach successfully.

Option 3: Short-Term Rental

Renting a home or apartment for a short period is always an option, especially once you have cash from your home sale. It’s not the most exciting solution, but it can give you breathing room to make your next purchase confidently and without rushing into the wrong decision.

Option 4: Temporary Home or “Concession” Property

We’ve also worked with sellers who buy something they don’t necessarily love—but it’s a good deal, and they plan to stay there only temporarily. Once the market shifts or the perfect home comes along, they sell again. It’s not ideal, but for the right situation, it can make sense.

Option 5: Purchase an Investment Property

Another creative approach is to sell your current home at today’s high prices and reinvest some of that profit into an investment property. For example, if you expected your home to sell for $650,000 and it goes for $700,000, that’s an extra $50,000 in your pocket. You can use that to purchase an investment property while you search for your permanent home—and later hold that property as a rental.

Every Situation Is Different

If you’re unsure how much your home could sell for, whether now is the right time, or which of these options would work best for you—reach out. I’m happy to walk you through your specific scenario and help you make the best decision for your goals.

Give me a call anytime. I’d love to help.