Seller’s Market Side Effects
“Twin Cities Housing Market Caught In A Supply Crunch As Demand Intensifies.”
—Headline, Twin Cities Business (April 14, 2016)
One of the side effects of a Seller’s market with very tight inventory is a surge in so-called “reverse contingencies,” whereby a homeowner agrees to sell only if they can find another home within a prescribed amount of time. See, “Sure I Can Sell My Home . . . But Where Am I Going to Move to??”
Here’s another: Sellers who sold their home (much) faster than they expected, and are now scrambling to find temporary housing.
Thus the increase I’m seeing in emails like the one above, from the Seller’s agent networking for their about-to-be-homeless client.
Don’t feel too badly for the Seller, though; you’d certainly guess they wouldn’t have sold unless they got a very good deal.
P.S.: Why doesn’t the Seller negotiate a rent-back agreement from the Buyer?
The risks are all on the side of the Buyer/New Owner (damage to home, insurance cost, moving out delay, etc.). Which is why most agents (myself included) strongly discourage Buyers from entertaining that option.