We all know it is a seller's market in Bozeman and housing pricing have been rapidly rising. If you have been thinking of selling your home, there has never been a better time. But, what do you do when you sell your home? Right now it is tough to be a buyer in Bozeman. We've all heard the stories of being 1 of 20 offers on a listing and the home going for $30,000 over asking, all while competing with cash buyers. While it is daunting to consider buying in Bozeman right now, it is still possible.
1) Meet with a lender
The first thing to do is find out what your buying capabilities will be. Many lenders offer a move-up buyer presentation. They will review your numbers and let you know how much equity you have in your current home and be able to tell you what your buying power is. Often, it is more than you might expect.
2) Meet with a realtor
Using an experienced real estate agent has never been more important! With a market as strong as the one we are currently experiencing in Bozeman, you need an agent to be watching when listings come on the market for you. Websites like Zillow and Realtor.com are 3rd party websites that pull properties from the Multiple Listing Service, which can take up to 24 hours. This means by the time you see a home for sale, agents have already known about it and potentially taken clients to view it. It's competitive enough, working with an agent gives you a head start.
If you don't have an agent, you can sign up for the new listing notifications on our website. This will send you notifications of homes within your criteria as soon as it hits the market.
3) Consider a bridge loan
In a fast-moving real estate market, some might hesitate to sell their home before they have new living arrangements. We can't blame them, homes sell fast and buying is competitive. A bridge loan is a nice option to discuss with your lender. A bridge loan is short-term financing, typically lasting up to a year. This type of loan can help homeowners buy a new home while they wait for their current home to sell. Borrowers use the equity in the home they are living in for the down payment on the new home they are purchasing.
While using a bridge loan can give you peace of mind, they generally come at a higher interest rate. It's best to talk with your lender to see if this is the best option for you.
4) Consider renting your current home
The rental market in Bozeman is as strong as the real estate market. There is a very low vacancy, hovering near 0-1%. With MSU students and an influx of new residents to the area, the rental market is seeing the same supply and demand issues. It might be worth considering renting your current home to continue to build equity, rather than selling.
5) Buy first
Because we are in a seller's market, homeowners can be fairly confident that if you price your home right and work with a good agent, your home will sell quickly. Knowing this, buying first can be a good option so you don't get caught up in buying something under pressure. Buying a home in Bozeman can take time right now because of the low supply. You might have to put offers in on several homes before you get an accepted offer. Once you have that, it will be time to list your house! Finding a replacement property first will mean you don't have to worry about finding a short-term rental (which can be tricky) and can move right into your new home when your current one sells. In a seller's market, you have more flexibility to include rent back options and closing dates that fit your needs.